The San Jose, Calif., company's fourth-quarter revenue outlook also exceeded expectations while its adjusted-profit view was just below estimates.
For the quarter ended April 30, ZScaler posted a loss of 43 cents a share compared with a loss of 15 cents a share in the year-earlier quarter. Excluding special items, the latest adjusted profit was 15 cents a share.
Revenue reached $176.4 million, up 60% from $110.5 million a year earlier.
A survey of analysts by FactSet produced consensus estimates of a GAAP net loss of 45 cents a share, or an adjusted profit of 7 cents a share, on revenue of $163.7 million.
At last check, Zscaler shares were trading up 8.1% at $186.70. They closed regular Tuesday trading down 1% at $172.74.
The stock has slumped from its 52-week high near $231, set in mid-February.
In early April, ZScaler said the Oklahoma Office of Management and Enterprise Services adopted its technology to “simplify its IT operations, quickly scale remote access for all employees anywhere they reside, and protect government data and applications from cybersecurity threats.” Terms weren’t disclosed.
And in late March, Barron's reported that Truist analyst Joel Fishbein upgraded Zscaler and Cloudflare (NET) - Get Cloudflare Inc. Class A Report to buy from hold, while reiterating optimism about a number of other security-software stocks, including Okta (OKTA) - Get Okta Inc. Report and CrowdStrike (CRWD) - Get CrowdStrike Holdings Inc. Report.
Fishbein sees demand growing particularly for software that addresses remote access and secure connections to services delivered in the cloud, Barron’s reported. Identity-management software will benefit from recent high-profile breaches, the analyst said, according to the paper.
For the fiscal fourth quarter, Zscaler expects to earn an adjusted 8 cents to 9 cents a share on revenue of $185 million to $187 million.
FactSet's survey for the quarter calls for adjusted profit of 9 cents a share on revenue of $173.9 million.