Zscaler Inc (NASDAQ:ZS) stock plunges 16.82% (As on September 4, 11:27:03 AM UTC-4, Source: Google Finance) after the company forecasted a lower-than-expected full-year outlook alongside solid figures for its fiscal fourth quarter. The company posted adjusted income from operations of $127.5 million, or 22% of revenue, in the quarter, up from $86 million, or 19% of revenue, a year ago. Cash provided by operations came in at $203.6 million, up from $135.9 million the year prior and as of the end of July, Deferred revenue rose 32%, to $1.895 billion, and it had $2.41 billion in cash, cash equivalents and short-term investments on hand. Free cash flow was $136.3 million, or 23% of revenue, compared to $101.3 million, or 22% of revenue, in the fourth quarter of fiscal 2023. Calculated billings grew 27% year-over-year to $910.8 million

Moreover, the company has surpassed half a trillion daily transactions, further demonstrating Zscaler’s position as a leader in the Zero Trust cloud security market. Zscaler has signed a strategic alliance with Google LLC to enhance secure application access, data protection and insights for enterprise customers using Chrome Enterprise, Google Workspace and Google Security Operations. Zscaler will also be integrating with Google Workspace to enable stricter control over sensitive emails and documents, preventing data exfiltration through data loss prevention tools and supporting tenant restrictions and data classification. Additionally, Zscaler will work with Google Security Operations to provide actionable security insights within a unified platform to improve threat detection and response capabilities.

ZS in the fourth quarter of FY 24 has reported the adjusted earnings per share of 88 cents, beating the analysts’ estimates for the adjusted earnings per share of 70 cents. The company had reported the adjusted revenue growth of 30 percent to $529.9 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $567.46 million.

For its fiscal 2025 first quarter, Zscaler expects adjusted earnings per share of 62 to 63 cents on revenue of $604 million to $606 million. The revenue outlook was below the 73 cents per share expected by analysts, while revenue was a slight beat versus an expected $603 million.

For the full fiscal year, the company forecast adjusted earnings per share of $2.81 to $2.87 on revenue of $2.61 billion at the midpoint. Both were misses, as analysts had been looking for a forecast of $3.01 per share on revenue of $2.62 billion.