Zscaler Inc (NASDAQ: ZS) stock rose 9.98% on 7th September, 2018 after the company’s stock price target raised by Credit Suisse Group from $38.00 to $46.00. They currently have an outperform rating on the stock. On the other hand, ZS has raised $205.3 million in net proceeds from our initial public offering in March 2018. The company in August 2018 has acquired artificial intelligence and machine learning technology and the development team of security startup TrustPath, Inc.
Meanwhile, the company in the fourth quarter of 2018 has posted better than expected results. 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. The company has delivered Non-GAAP net loss of $1.4 million, compared to $7.4 million in the fourth quarter of fiscal 2017. 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. Cash, cash equivalents and short-term investments were $298.5 million as of July 31, 2018. 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.
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 $50.72 million. Deferred revenue grew 70% year-over-year to $164.0 million. Fourth quarter calculated billings grows 72% year-over-year to $95.4 million.
ZS expects an adjusted loss of 6 cents to 5 cents a share on revenue of $58 million to $59 million for the first quarter of 2019, and an adjusted loss of 13 cents to 12 cents a share on revenue of $250 million to $260 million for the FY 19. Analysts expect a loss of 6 cents a share on revenue of $53.3 million for the first quarter of 2019, and a loss of 14 cents a share on revenue of $245.9 million for the FY 19.