Zscaler stock gains on expecting Q3 results above guidance, boosts FY2023 outlook
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Zscaler (NASDAQ:ZS) expects to report Q3 revenue in the range of $415M to $419M, exceeding prior guidance of $396M to $398M and consensus of $400.5M.
The company sees Q3 Non-GAAP income from operations between $60M to $64M, above prior view of $55M to $56M.
Based on preliminary Q3 figures, the company expects to report calculated billings of approximately $478M to $482M, an increase of approximately 38% to 39% Y/Y.
The company also raised FY2023 outlook and now expects total revenue in the range of $1.587B to $1.591B, higher than previously estimated range of $1.558B to $1.563B and consensus of $1.56B; Calculated billings of $1.970B to $1.974B up from prior expectation of $1.935B to $1.945B; Non-GAAP income from operations of $220M to $224M vs. previous view of $213M to $215M.
âI am pleased to announce that our preliminary third quarter results exceeded the high end of our guidance range. We had a strong finish to the quarter as the high ROI of adopting the Zscaler Zero Trust Exchange platform continues to resonate with customers and prospects in this challenging macro environment,â said Jay Chaudhry, Chairman and CEO of Zscaler. âOur customer engagements are strong, and our platform continues to expand with innovations that solve our customers' real time IT challenges. We look forward to sharing more details on our upcoming earnings conference call.â
The company will release Q3 earnings after the market close on Thursday, June 1, 2023.
Shares up 18% in Monday's premarket hours following this announcement.