Zscaler Inc (NASDAQ:ZS) stock rallies 19.6% (As on September 9, 11:27:20 AM UTC-4, Source: Google Finance) after the company delivered an earnings beat and a better-than-expected outlook. For its fiscal fourth quarter ended July 31, Zscaler reported a profit before costs such as stock compensation of $36.4 million, up from $20.3 million in the same quarter of last year. Cash flow in Zscaler’s fiscal fourth quarter was $103.1 million or 32% of revenue, up from $44.7 million or 23% of revenue a year ago. Free cash flow was $74.8 million, or 24% of revenue, compared to $27.7 million, or 14% of revenue, in the fourth quarter of fiscal 2021. Deferred revenue as of July 31 was $1.02 billion, up 62% year-over-year, and cash, cash equivalents and short-term investments were $1.73 billion.

ZS in the fourth quarter of FY 22 has reported the adjusted earnings per share of 25 cents, beating the analysts’ estimates for the adjusted earnings per share of 21 cents. The company had reported the adjusted revenue growth of 61 percent to $318.1 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $305.4 million.

For its fiscal first quarter of 2023, Zscaler expects an adjusted profit of 26 cents per share on revenue of $339 million to $341 million. Analysts had expected 21 cents and $325.1 million. For the first quarter of fiscal 2023, ZS expects Non-GAAP income from operations to be in the range of $37 million to $38 million.

For the full fiscal year 2023, the company predicts earnings per share of $1.16 to $1.18 on revenue of $1.49 million to $1.5 billion. Analysts had expected $1.04 and $1.47 billion. For the full year fiscal 2023, ZS expects calculated billings to be in the range of $1.92 billion to $1.94 billion and Non-GAAP income from operations to be in the range of $173 million to $176 million

Meanwhile, the company has launched advanced AI/ML innovations to deliver unparalleled user protection and digital experience monitoring. The new capabilities enhance Zscaler’s Zero Trust Exchange platform to enable organizations to implement a security service edge (SSE) that protects enterprises against the most advanced cyberattacks, while delivering exceptional digital experiences for users and simplifying adoption of a Zero Trust architecture. The company has announced that Zscaler and Siemens are delivering an all-in-one solution to accelerate secure digitalization for OT environments.