Business Corpus: Zscaler Reports Narrower-Than-Expected Loss, Revenue Tops ViewsZscaler on Wednesday reported a narrower-than-expected fiscal fourth-quarter loss as revenue topped expectations. Shares in the cloud cybersecurity firm fell in late trading. The post Zscaler Reports Narrower-Than-Expected Loss, Revenue Tops Views appeared first on Investor's Business Daily.

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Zscaler (ZS) on Wednesday reported a narrower-than-expected fiscal fourth-quarter loss as revenue topped expectations and it forecast full-year 2019 sales above analyst estimates. Shares in the cloud cybersecurity firm fell in late trading.

Zscaler said it lost 1 cent a share with revenue rising 54% to $56.2 million, topping views. A year earlier as a private company, Zscaler said it had a 7-cent loss per share on sales of $36.5 million.

Analysts expected San Jose, Calif.-based Zscaler to report a loss of 5 cents a share on sales of $50.7 million for the period ended July 31.

Shares in the maker of computer security software slipped 2.5% to 42.98 in after-hours trading on the stock market today.

Guidance Above Analyst Estimates

For the current quarter, the computer security firm said it expects revenue of $58.5 million vs. analyst estimates of $53.5 million. For full-year 2019, Zscaler forecast revenue of $255 million. Analysts had projected $246 million.

The cybersecurity firm said it expects an October loss in a range of 5 cents to 6 cents, in line with estimates. It forecast a full-year loss of 12 cents to 13 cents, a penny below estimates.

The cybersecurity firm's IPO on March 16 raised $192 million. The initial public offering priced at $16 a share. As of Wednesday's market close, the computer security firm's stock had shot up 175% since the IPO.

With a cloud-based security platform, Zscaler aims to replace the hardware or software that companies buy for their own computer networks. The cybersecurity firm provides secure connections between a customers' internal business apps and authorized users that work remotely.

Zscaler Competes With Cisco

Zscaler houses its security infrastructure at over 100 data centers worldwide. Customers use private connections to route their internet traffic to the cybersecurity firm's cloud for inspection. Cloud security partners include Microsoft (MSFT).

Zscaler competes with Cisco Systems (CSCO), Symantec's (SYMC) Blue Coat unit, and Raytheon's (RTN) ForcePoint. Cisco was in talks to buy Zscaler prior to its IPO, Bloomberg reported. Symantec has filed two patent infringement lawsuits versus Zscaler.

The cybersecurity firm recently also partnered with Arista Networks (ANET), a maker of computer network gear. Arista packages Zscaler's security tools with its network switches.

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