Zscaler Stock Tanks 17% On Weak Outlook

(RTTNews) - Shares of Zscaler, Inc. (ZS) tanked over 17% on Wednesday morning after reporting its fourth-quarter results and issuing a weak outlook for the first quarter and full year 2025.

ZS is currently trading at $158.66, down $34.53 or 17.87%, on the Nasdaq. The stock opened its trading at $158.47 after closing Tuesday at $193.19. The stock has traded between $146.59 and $259.61 in the past 52-week period.

Revenues for the quarter increased 30% to $592.9 million. Fourth-quarter loss was $14.9 million or $0.10 per share, compared to $30.7 million or $0.21 per share last year. Adjusted income was $140.6 million or $0.88 per share, compared to $100.9 million or $0.64 per share last year.

Looking forward to the first quarter, the company expects revenues of $604 million to $606 million and adjusted earnings of about $0.62 to $0.63 per share. Analysts expects earnings of $0.73 per share and revenues of $602.77 million.

For the full year fiscal 2025, the company expects revenues of about $2.60 billion to $2.62 billion and adjusted earnings of $2.81 to $2.87 per share. Analysts expects earnings of $3.33 per share and revenues of $2.62 billion.