What happened

After it reported the fiscal 2019 second quarter and boosted guidance, shares of Zscaler (NASDAQ:ZS), a red-hot provider of cloud-based internet security solutions, jumped 18% as of 11:45 a.m. EST on Friday.

So what

Here are the headline numbers from the company's fiscal 2019 second quarter:

  • Revenue rose 65% to $74.3 million. That comfortably exceeded management's guidance range and easily topped the $66.3 million that Wall Street had expected.
  • GAAP (generally accepted accounting principles) net loss was $3.6 million. That was down from $6.5 million in the year-ago period.
  • Non-GAAP net income was $11.6 million, or $0.09 per share. That compares to a net loss of $2.8 million, or $0.03, last year. This number also crushed the $0.01 net loss that analysts had predicted.

The strong results enabled management to issue strong guidance for the quarter ahead:

  • Revenue is projected to land between $74 million and $75 million. That's much higher than the $68 million that Wall Street was predicting.
  • Non-GAAP net income is expected to be between breakeven and $1 million, or $0.00 to $0.01 per share. That's better than the $0.02 loss that analysts were predicting.

Click here for the latest earnings call transcript for Zscaler.

Business people giving high five

Image source: Getty Images.

Management took the opportunity to boost its full-year guidance, too:

  • Revenue is expected to land between $289 million and $291 million. That's up from its prior range of $268 million to $272 million.
  • Non-GAAP income from operations is expected to be between $11 million and $13 million, or $0.11 to $0.13. That's better than its previous guidance and also exceeds Wall Street's estimate of a $0.02 loss per share.

Given the estimate-topping results and strong guidance, it isn't hard to figure out why shares are flying high today. 

Now what

Zscaler's results showcase with this stock is already up more than 250% since its IPO in March of 2018. That's an unbelievable run for such a short time.

With management calling for huge revenue growth in fiscal 2019 and for adjusted profits on the bottom line, Zscaler's investors have every reason to cheer today.