Shares of Zscaler (NASDAQ:ZS) gained in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2023. Earnings per share came in at $0.64, which beat analysts’ consensus estimate of $0.49 per share.
Sales increased by 43.1% year-over-year, with revenue hitting $455.01 million. This beat analysts’ expectations by $24.4 million. In addition, free cash flow increased to $101.3 million versus the $74.8 million seen in Q4 2022. However, free cash flow margin slipped from 24% to 22% during the same time period.
Looking forward, management now expects revenue and adjusted earnings per share for Q1 2024 to be in the ranges of $472 million to $474 million and $0.48 to $0.49, respectively. For FY 2024, these figures jump to a range of $2.050 billion to $2.065 billion for revenue and $2.20 to $2.25 for EPS.
Overall, Wall Street has a consensus price target of $172.91 on ZS stock, implying over 6% upside potential, as indicated by the graphic above.
