Zscaler Inc. (NASDAQ: ZS) reported a wider loss in the first quarter of 2020 due to higher costs and expenses despite a 48% jump in the top line. The results exceeded analysts’ expectations. Further, the cloud security company lifted its guidance for the full year 2020.
Net loss was $17.1 million or $0.13 per share compared to a loss of $7.6 million or $0.06 per share in the previous year quarter. Adjusted earnings soared by 50% to $0.03 per share.
Total revenue jumped by 48% to $93.6 million. The top line benefited from a 37% growth in calculated billings. Deferred revenue climbed by 49% year-over-year to $245.9 million.
Looking ahead into the second quarter of 2020, the company expects total revenue in the range of $97-100 million and adjusted earnings of about $0.03 per share.
For the full year 2020, the company lifted its total revenue outlook to the range of $405-413 million from the previous range of $395-405 million. Adjusted earnings guidance is narrowed to the range of $0.13-0.15 per share from the prior range of $0.12-0.15 per share. Calculated billings forecast is raised to the range of $500-510 million from the earlier range of $490-500 million.
The company said it continues to significantly invest in its business for pursuing a large market opportunity. Zscaler sees enterprises increasingly transforming their network and security to realize the benefits of the cloud as it scales all elements of its go-to-market strategy.
The company continues to tap on the opportunity of expanding its customer base both in the US and worldwide as this could aid in turning itself profitable. Also, Zscaler will continue to invest in R&D for new services and additional addressable market segments expansion.