Zscaler jumps as Wedbush Securities says 'strong' guidance is key for investors
Michael Vi

Zscaler (NASDAQ:ZS) shares jumped nearly 14% on Friday after the IT security company reported fourth-quarter results that topped expectations and issued strong guidance that Wedbush Securities said was a "key" for investors.
Analyst Dan Ives, who has an outperform rating on Zscaler (ZS), noted that billings growth of 57% year-over-year was "the star of the show" and its guidance was a relief for investors.
"Overall, this quarter/guidance will be a major relief for the bulls as the core fundamental strength of [Zscaler] is enabling the company to power through this softer macro in an impressive Josh Allen-like fashion," Ives wrote in a note to clients, making a reference to the Buffalo Bills quarterback.
Excluding one-time items, Zscaler said it earned 25 cents per share on $318.06M in revenue, compared to estimates of 21 cents per share on $305.54M in revenue. 
Ives also noted that the addition of 327 customers with more than $1M in annual recurring revenue and 20 customers with more than $5M is an "impressive performance," citing the company's "unique product suite."
Looking to the next fiscal year, Zscaler (ZS) said it expects revenue to be between $1.49B and $1.5B, compared to estimates of $1.47B. Billings are expected to be between $1.92B and $1.94B.
For the first-quarter, Zscaler (ZS) expects sales to be between $339M and $341M, topping estimates of $326.16M. Earnings, excluding one-time items, are forecast to be $0.26 per share, topping consensus estimates of $0.22 per share.
In July, investment firm BTIG downgraded Zscaler (ZS), noting that independent field checks "downticked from prior quarters and lead us to believe sales cycles will elongate over the next 6-12 months."