Zscaler ( NASDAQ: ZS ) shares fell more than 11% on Friday as the cybersecurity company reported second-quarter results that topped expectations but not as much as Wall Street had been accustomed to.
For the period ending January 31, Zscaler ( ZS ) said it earned an adjusted 37 cents per share on $387.6M in revenue, up 51.7% year-over-year, along with $493.8M in billings.
Analysts were expecting the company to earn 29 cents per share on $364.78M in sales.
Wedbush Securities analyst Dan Ives, who has an outperform rating on Zscaler ( ZS ), noted that the billings figure was "not the typical massive ... beat" investors have come to expect from Zscaler ( ZS ), as there seems to be more scrutiny on budgets and longer sales cycles.
Nonetheless, federal cybersecurity spending looks "robust" and the sharp decline could be a buying opportunity for investors, Ives explained. "In our opinion [Zscaler] remains a gold standard cyber name to own and we would be buyers on weakness for this high quality zero trust growth name going through a near-term uncertain macro."
Looking to the third-quarter, Zscaler ( ZS ) expects revenue to be between $396M and $398M, with adjusted earnings to be around 39 cents per share.
For the full-year, the company expects revenue to be between $1.558B and $1.563B, with calculated billings between $1.935B and $1.945B.
Last month, Zscaler ( ZS ) announced plans to acquire application security platform company Canonic Security .
For further details see:
Why did Zscaler stock fall today? Q2 results not a 'typical massive beat'