Zscaler Inc shares tumbled over 7% in pre-market trading on Monday as a slowdown in billings and in-line guidance for the coming quarter appeared to spook investors.
Cloud security firm Zscaler had unveiled expectation-beating revenue and earnings for its first financial quarter.
Revenue jumped 26% to $628 million, Zscaler said Monday, outdoing forecasts for $605.6 million, while per-share earnings grew from $0.55 to $0.77 and beat the $0.63 expected.
However, bookings over the quarter were said to have risen by 13% to $516.7 million, marking a slowdown from the 27% growth seen over the previous three months.
Guidance for second-quarter earnings of between $0.68-$0.69 per share and revenue of $633-$635 million was laid out, against forecasts for $0.68 and $633.1 million respectively.
"Stepping back and simply considering the results outside the purview of the ‘prudent’ guidance, we see significant moderation in business momentum,” Guggenheim analysts noted, highlighting the billings slowdown.
Zscaler also announced the departure of chief financial officer Remo Canessa alongside the results, which BMO analysts said threatened to overshadow the figures.
Shares slumped 7.1% to $193.70 ahead of Tuesday’s opening bell.