Zscaler Stock Surges 17.5% on Strong Q1 Earnings and Upbeat FY 2024 Guidance

Zscaler's stock surged following the release of its Q1 earnings report, which significantly exceeded market expectations. The company reported a 32% year-over-year increase in revenue, reaching $553.2 million, and a 30% year-over-year increase in billings with a DBNRR of 116%. Adjusted diluted EPS rose by 83% year-over-year to $0.88, while free cash flow increased by 63% with a margin of 22%. Zscaler also provided an optimistic revenue guidance for FY 2024, projecting between $2.14 billion and $2.142 billion. The strong performance and positive outlook, including an upbeat Q4 forecast, have led to a 17.5% increase in premarket trading and an 8.5% rise in the stock price by market close. The company now has 523 customers with annual recurring revenue over $1 million. Analysts have subsequently revised their price targets for Zscaler's stock.