Zscaler (NASDAQ: ZS) shares tanked more than 7% in premarket trading following its FQ1/CQ3 earnings report, opening a textbook buy-the-dip opportunity. The results failed to impress the analysts, but that is the only thing wrong with the report. The analysts had set a high bar for the company to beat, and the results were as expected, which is excellent. The takeaway is that sentiment took a hit but not the fundamental outlook, which is robust.
Zscaler is on track to produce GAAP profitability, has solid cash flow, and is building value for investors in a world where its services are in high demand. The world continues to digitize, and businesses need to capitalize on their data and be secure while doing so. That is where Zscaler excels—aiding businesses in digital transformation, keeping them secure, and helping them scale to new heights.
