Zscaler Shares Up On Outlook Revision, New CFO Appointment, Despite Q3 Loss

Zscaler

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(RTTNews) - Shares of Zscaler, Inc. (ZS) gained around 5 percent on Thursday's extended hours, and is currently 4 percent higher in pre-market activity on the Nasdaq, after the cyber security company lifted its fiscal 2025 earnings and revenue outlook, buoyed by a 23 percent increase in third-quarter revenues, despite a loss.

The company also announced the appointment of Kevin Rubin as the new Chief Financial Officer.

Rubin will take over from Remo Canessa, who had made his retirement announcement last year. Zscaler added that Canessa will remain with the company until the end of fiscal 2025, as an advisory to help with a smooth transition.

In his latest role, Rubin will oversee the firm's worldwide finance organization and play an important role in improving operations to support the next phase of growth and innovation.

Before joining Zscaler, Rubin had help CFO roles at BetterUp, and prior to that at Alteryx, leading its IPO. Previously, he was CFO at MSC Software, Pictage, DDN Storage and MRV Communications.

Separately, the company provided outlook for the fourth quarter and fiscal 2025. In the fourth quarter, the company expects earnings between $0.79 and $0.80 and revenues in the range of $705 million to $707 million.

The Wall Street analysts, on average, expect the company to post earnings of $0.79 per share on revenue of $707.91 million.

Further, the company lifted its earnings and revenue outlook for fiscal 2025. It now expects earnings per share between $3.18 and $3.19 on revenue in the $2.659 billion-$2.661 billion range. Earlier, the company projected earnings per share between $3.04 and $3.09 on revenue between $2.640 billion and $2.654 billion.

Analysts expect the company to post earnings of $3.14 per share on revenue of $2.66 billion for fiscal 2025.

In its third quarter, Zscaler posted a loss of $4.13 million, compared to profit of $19.12 million last year. Loss per share was $0.03, compared to profit per share of $0.12 in the prior year.

Adjusted earnings were $0.84 per share for the period. Revenue climbed to $678.0 million from $553.2 million in the same period last year.

On the Nasdaq, ZS was up 5 percent on Thursday's after hours to $263.89, after losing 1 percent on the regular trading.

In pre-market activity, the shares were gaining around 3.6 percent to trade at $260.19.