Shares of Zscaler, Inc. (ZS) plummeted by over 17% on Wednesday morning following the release of its fourth-quarter results and a disheartening outlook for the first quarter and the full fiscal year 2025.
Currently, ZS is trading at $158.66, reflecting a decline of $34.53 or 17.87% on the Nasdaq. The stock opened at $158.47, a significant drop from Tuesday’s close of $193.19, and has fluctuated between $146.59 and $259.61 over the past 52 weeks.
For the fourth quarter, Zscaler reported a 30% increase in revenues, amounting to $592.9 million. The company recorded a net loss of $14.9 million or $0.10 per share, an improvement from the previous year’s loss of $30.7 million or $0.21 per share. Adjusted earnings stood at $140.6 million or $0.88 per share, up from $100.9 million or $0.64 per share last year.
Looking ahead to the first quarter, Zscaler projects revenues between $604 million and $606 million, with adjusted earnings ranging from $0.62 to $0.63 per share. This falls short of analysts' expectations, who forecast earnings of $0.73 per share and revenues of $602.77 million.
For the full fiscal year 2025, the company anticipates revenues in the range of $2.60 billion to $2.62 billion and adjusted earnings of $2.81 to $2.87 per share. Analysts had projected earnings of $3.33 per share and revenues of $2.62 billion.
