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.
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.
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.
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.