Zscaler (ZS) exceeded fiscal fourth-quarter expectations on both the top and bottom line, but weaker-than-expected fiscal 2025 guidance disappointed investors. Zscaler CEO Jay Chaudhry joins Asking for a Trend to discuss the cloud company's latest earnings print.

Chaudhry notes that the fourth quarter numbers were strong "across all metrics." He explains that Zscaler's fiscal 2025 guidance projects for 19 to 20% growth year-over-year, adding: "Investors expected that. What they got a disconnect was the growth in the first half of billing was lower" while the second half growth for billings was higher. The combination of these factors led to the guidance that disappointed investors.

"We have a lot of opportunity in front of us," Chaudhry emphasizes. As far as competition, Chaudhry notes "the large customers are very picky, very demanding." With Zscaler having established its position within the market, he believes that they have a sizable lead over newer entrants.

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This post was written by Angel Smith