Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market

Zscaler said fourth-quarter revenue will come in below estimates, pointing to intensifying competition in cybersecurity and tighter enterprise scrutiny of cloud security spending. The guidance miss drove shares down 15% in extended trading. The update signals softer near-term demand and a more challenging competitive backdrop for the company.

Analysis

Zscaler said fourth-quarter revenue will come in below estimates, pointing to intensifying competition in cybersecurity and tighter enterprise scrutiny of cloud security spending. The guidance miss drove shares down 15% in extended trading. The update signals softer near-term demand and a more challenging competitive backdrop for the company.