The recent attack by Russia on Ukraine has heightened the interest in cyber security players. Enterprise cloud security company Zscaler (Nasdaq: ZS) is one such player that is expected to see an increased market interest in its products. The company recently reported its second-quarter results that continued to outpace market expectations.

Zscaler’s Financials

Revenues for the second quarter grew 63% to $255.6 million, ahead of the market’s forecast of $242 million. GAAP net loss was $100.4 million, compared with a net loss of $67.5 million a year ago. Non GAAP EPS was $0.13 compared with the Street’s forecast of an EPS of $0.11.

Among key metrics, calculated billings for the quarter grew 59% to $367.7 million. Deferred revenues grew 70% to $759.9 million.

For the third quarter, Zscaler expects revenue of $270-$272 million and an EPS of $0.10-$0.11. The market was looking for revenues of $256.7 million and an EPS of $0.11. Zscaler expects to end the current year with revenues of $1.045-$1.05 billion and an EPS of $0.54-$0.56. The Street had forecast revenues of $1.01 billion and an EPS of $0.52.

Zscaler’s Product Upgrades

Recently, Zscaler announced its partnership with Siemens that allows customers to securely access Operational Technology (OT) systems and applications in the production network from the workplace. The partnership allows the two companies to expand the “Defense-in-Depth” OT concept secured by Zero Trust Architecture. Combined with the existing OT security mechanisms including cell protection firewalls, it allows for the implementation of a granular access concept. Production requirements for availability and real-time capabilities will be met through the installation of Zscaler Private AccessTM (ZPATM), an app connector for the cloud-based remote access service, on a Docker container in the Siemens Scalance LPE local processing platform, creating an access solution for industrial environments.

It also announced the general availability of its new Workload Communications solutions, a part of the Zscaler Zero Trust Exchange, extending Zero Trust security to workloads and applications hosted in public clouds. The general availability allows enterprises to secure workload communications over any network, including the internet, direct connect, express route, and others. Zscaler customers are able to implement Application-to-Internet Communications, Multi-Cloud Application-to-Application Communications, and Intra-Cloud Application-to-Application Communications.

Zscaler’s products have received several accolades from researchers. Recently released Gartner’s Magic Quadrant for Security Service Edge tagged it as a leader due to its products/services, customer experience, market responsiveness, track record, marketing execution, sales execution/pricing, operations, and overall viability.

Recent Russian attacks on Ukraine have heightened the concerns about cyber security across the globe. Many believe that Russia will retaliate against the Western and ally sanctions through cyberattacks. Zscaler’s high-rated products will see increased interest from the markets as organizations step up efforts to beef their cyber security.

Despite the opportunity expected for Zscaler, its light earnings outlook failed to impress the market. The stock fell 18% and is currently trading at $221.85 with a market capitalization of $31.1 billion. It had fallen to a 52-week low of $157.03 in May last year, but it has recovered since and had climbed to a 52-week high of $376.11 in November last year.