Zscaler Stock Falls on Billings Decline, Weak Outlook | Global News Avenue

Z Scaler (ZS) shares fell 5% on Tuesday after the cloud-based cybersecurity platform reported slowing revenue and issued impressive guidance. Additionally, the company announced that its corporate treasurer will resign.

Zscaler announces adjusted first quarter results for fiscal year 2025 Earnings per share (EPS) US$0.77, and revenue increased 26% year-on-year to US$628 million. Both beat analysts’ forecasts polled by Visible Alpha.

However, revenue of $516.7 million was down 43% from the previous quarter and was the lowest total since the first quarter of fiscal 2024.

Zscaler expects adjusted earnings per share for the quarter of $0.68 to $0.69 on revenue of $633 million to $635 million. Analysts polled by Visible Alpha expected the product to sell for $0.69 and $634.8 million, respectively.

CFO retires after appointing replacement

The company also announced Chief Financial Officer (CFO) Remo Canessa has decided to retire after appointing his successor. Zscaler noted that Canessa’s decision was “not due in whole or in part to any disagreement with the company on any matter related to the company’s operations, policies or practices.” It added that a search for a new chief financial officer was underway.

Zscaler shares are down about 10% so far this year.