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Zscaler (ZS) Reports Q3 Earnings: What Key Metrics Have to Say

For the quarter ended April 2023, Zscaler (ZS) reported revenue of $418.8 million, up 46% over the same period last year. EPS came in at $0.48, compared to $0.17 in the year-ago quarter.

The reported revenue represents a surprise of +0.34% over the Zacks Consensus Estimate of $417.37 million. With the consensus EPS estimate being $0.42, the EPS surprise was +14.29%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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Here is how Zscaler performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Billings: $482.29 million compared to the $452.94 million average estimate based on eight analysts.

  • Dollar-Based Net Retention Rate: 125% versus 125% estimated by two analysts on average.

  • Remaining Performance Obligations: $3.02 billion versus $3.03 billion estimated by two analysts on average.

View all Key Company Metrics for Zscaler here>>>

Shares of Zscaler have returned +39% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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