Zscaler (ZS) Slashes 13% on Profit-Taking

Core Insights - Zscaler, Inc. (NASDAQ:ZS) experienced a significant decline of 13.03% on Wednesday, closing at $251.97, as investors engaged in profit-taking ahead of the Thanksgiving holiday after two days of gains [1] Financial Performance - The company reported a narrowed net loss of 3.7% to $11.6 million from $12.05 million year-on-year, while revenues increased by 25% to $788 million from $627.9 million [2] - For the full fiscal year, Zscaler anticipates revenues between $3.282 billion and $3.301 billion, with annual recurring revenues projected between $3.698 billion and $3.718 billion. The company also targets non-GAAP operating income of $732 million to $740 million and earnings per share (EPS) of $3.78 to $3.82 [3] - In the second quarter, revenues are expected to be between $797 million and $799 million, with non-GAAP income from operations targeted at $172 million to $174 million and EPS projected at $0.89 to $0.90 [4] Market Position and Strategy - The Chairman and CEO of Zscaler, Jay Chaudhry, highlighted strong demand for their Zero Trust and AI Security platform, noting over $3.2 billion in Annual Recurring Revenue, which has grown over 25% year-on-year [5] - Zscaler is recognized for pioneering Zero Trust security and is integrating recently acquired SPLX technology with its AI Security offerings to address emerging security challenges [6]