Key Takeaways
Zscaler ( ZS ) shares fell 5% Tuesday, a day after the cloud-based cybersecurity platform reported a slowdown in billings and issued underwhelming guidance. In addition, it announced the company's finance chief would be stepping down.
Zscaler posted first-quarter fiscal 2025 adjusted earnings per share (EPS) of $0.77, with revenue up 26% year-over-year to $628.0 million. Both exceeded forecasts of analysts polled by Visible Alpha.
However, billings came in at $516.7 million, a 43% decline from the previous quarter and the lowest total since the first quarter of fiscal 2024.
Zscaler sees current-quarter adjusted EPS of $0.68 to $0.69 and revenue of $633 million to $635 million. Analysts surveyed by Visible Alpha were looking for $0.69 and $634.8 million, respectively.
CFO To Retire Once Replacement Named
The company also announced that Chief Financial Officer (CFO) Remo Canessa has decided to retire once his replacement is named. Zscaler noted that Canessa's decision "is not the result, in whole or in part, of any disagreement with the Company on any matters relating to the Company’s operations, policies or practices." It added that a search for a new CFO is under way.
Shares of Zscaler are down about 10% year-to-date.
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