Zscaler Shares Decline Despite Beating Earnings Estimates

The cybersecurity firm's shares fell after reporting slower revenue growth and increased operating expenses, overshadowing its earnings beat.

Zscaler's shares dropped more than 7% following a report of slower revenue growth and a significant increase in operating expenses.
Despite topping Wall Street targets for earnings and revenue, the company's stock fell due to concerns over its growth pace and cost management.
The company's revenue rose 35% in the second quarter, marking its slowest pace of growth in at least four consecutive quarters.
Zscaler is revamping its sales model to focus more on vertical selling, which may cause near-term disruptions.
The firm's guidance for the current quarter ending in April is ahead of analyst estimates, indicating confidence in its future performance.