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Why Zscaler Stock Gained 23% in January


What happened

Shares of Zscaler (NASDAQ: ZS)  jumped 23.4% last month, according to data provided by S&P Global Market Intelligence , following a big move higher  in the wake of the company's fiscal first-quarter earnings release in December.

So what

Zscaler's Q1 revenue surged 58.7% year over year to $63.3 million. That bested Wall Street's expectations by nearly $5 million.

Moreover, Zscaler unexpectedly delivered an adjusted profit and generated positive free cash flow -- both of which it expects to do on a consistent basis by fiscal 2020.

Better still, Zscaler boosted its full-year revenue forecast to a range of $268 million to $272 million. That, too, was well ahead of analysts' estimates, which had been for $259 million.

A dial labeled sales turned to maximum

Zscaler's revenue is growing at a torrid clip. Image source: Getty Images.

Now what

Zscaler's shares are essentially flat so far in February. Investors are standing pat until the cybersecurity leader's nex t earnings report, which is scheduled for Feb. 28. Zscaler will also hold an investor conference call that same day at 4:30 p.m. ET. A transcript of the call will be made available here .

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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of Zscaler, Inc. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Personal Finance , Stocks
Referenced Symbols: ZS



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