Zscaler Inc (NASDAQ: ZS) stock fell over 7.6% on 6 Sep, (as of 12:23 PM GMT-4; Source: Google finance)
The company reported a fiscal fourth-quarter loss of $7 million, compared with $15.8 million in the year-ago period. The company has ended fiscal 2018 with over 3,250. Total Global 2000 customers increased to 300 as of July 31, up from over 200 a year, which reflects strong traction among large enterprises. Non-GAAP loss from operations was $2.4 million, or 4% of total revenue, compared to $7.2 million in the fourth quarter of fiscal 2017, or 20% of total revenue. Net cash flows provided by operations was $14.7 million, compared to net cash flows used in operations of $3.7 million in the fourth quarter of fiscal 2017. Free cash flow was $11.9 million, or 21% of total revenue, compared to negative free cash flow of $5.4 million, or 15% of total revenue, in the fourth quarter of fiscal 2017. Deferred revenue grew 70% year-over-year to $164.0 million. Cash, cash equivalents and short-term investments were $298.5 million as of July 31, 2018.
ZS in the fourth quarter of FY 18 has reported the adjusted loss per share of 1 cents, beating the analysts’ estimates for the adjusted loss per share of 5 cents. The company had reported the adjusted revenue growth of 54 percent to $56.2 million in the fourth quarter of FY 18, beating the analysts’ estimates for revenue of $50.7 million.
Zscaler estimates an adjusted loss of 6 cents to 5 cents a share on revenue of $58 million to $59 million for the first quarter, and an adjusted loss of 13 cents to 12 cents a share on revenue of $250 million to $260 million for the year. Analysts expect a loss of 6 cents a share on revenue of $53.3 million for the first quarter, and a loss of 14 cents a share on revenue of $245.9 million for the year.
Meanwhile, ZS has acquired artificial intelligence and machine learning technology and the development team of security startup TrustPath, Inc. to extend the ability to derive intelligence from transactions processed by the cloud to identify anomalous traffic, build user behavioral profiles, compute enterprise risk posture, and detect sophisticated targeted attacks as they emerge