Enterprise cloud security company Zscaler (Nasdaq: ZS) recently reported its first-quarter results that continued to outpace market expectations. It has been working on expanding its market reach by focusing on products geared toward the enterprise sector.

Zscaler’s Financials

Revenues for the first quarter grew 54% to $355.5 million, ahead of the market’s forecast of $341.1 million. Net loss was $68.2 million, compared with a net loss of $90.8 million a year ago. Non-GAAP EPS was $0.29, compared with the Street’s forecast of an EPS of $0.26.

Among key metrics, calculated billings for the quarter grew 37% to $340.1 million. Deferred revenues grew 55% to $1.006 billion.

For the second quarter, Zscaler expects revenue of $364-$366 million and an EPS of $0.29-$0.30. The market was looking for revenues of $254.86 million and an EPS of $0.26. Zscaler expects to end the current year with revenues of $1.525-$1.530 billion and an EPS of $1.23-$1.25. The Street had forecast revenues of $1.5 billion and an EPS of $1.17.

Zscaler’s Product Upgrades

Recently, Zscaler announced the extension of its partnership with Zoom, unveiling new integrations that connect the Zscaler Digital Experience (ZDX) monitoring service with Zoom’s Quality of Service Subscription (QSS). The integrations provide IT and helpdesk teams near real-time quality performance metrics and analytics for all remote office employees. IT teams are able to quickly troubleshoot issues within devices, networks, or services that impact employee collaboration to improve productivity and user experience. The new integrations include additional benefits such as enterprise-wide quality monitoring and analytics, real-time detection and troubleshooting, and immediate time to value.

Recently, Zscaler also announced new data protection innovations that will accelerate data protection programs with zero configuration for data loss prevention (DLP). The offering will mitigate security risks by unifying data protection across all channels and will simplify operations by automating workflows. According to a recent report, 36% of cloud application data is accessible via the open internet, posing a serious threat of data exposure to companies migrating to the cloud.

Traditional DLP solutions can’t secure distributed data and require significant resources to configure, maintain, and manage. Additionally, the lack of automated workflows prevents security teams from managing critical risks leading to elongated mitigation timelines and unresolved incidents. Zscaler’s offerings will utilize its security cloud and accelerate the deployment of data protection programs, add endpoint, and email data protection capabilities to the existing support of web, SaaS, IaaS, PaaS, and private apps. It aims to remove the need for point products and provide advanced closed-loop incident management by automating workflows to respond to potential security risks in a timely and effective manner. With the addition, Zscaler will continue to expand into the enterprise segment by offering industry-first zero configuration data protection capabilities.

Meanwhile, Zscaler continues to expand its presence in the Federal space and recently earned FedRAMP Moderate authorization for Zscaler Private Access, making it the only cloud security service provider to have all core solutions comprising its portfolio of products. The certification will help Zscaler continue to make inroads into the government sector.

Zscaler is currently trading at $113.54 with a market capitalization of $16.4 billion. It fell to a 52-week low of $111.47 earlier this month and had climbed to a 52-week high of $332.50 in December last year.

More By This Author:

Cloud Stocks: Adobe Adds AI Capabilities To Creative Cloud
Cloud Stocks: DocuSign Focuses On Diversifying Portfolio
Cloud Stocks: Veeva CRM Will Move To Vault Platform