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. "
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Zscaler jumps as Wedbush Securities says 'strong' guidance is key for investors