Why Are Zscaler Shares Trading Lower After Q2 Earnings Beat?

Shares of Zscaler Inc (NASDAQ:ZS) are trading lower in Thursday’s after market session following an earnings beat. Here’s what investors need to know.

By The Numbers: Zscaler reported second-quarter earnings per share of 37 cents, beating consensus estimates of 29 cents. Revenue $387.6 million beat the $364.91-million consensus estimate. 

The company issued third-quarter guidance ahead of estimates as well. Zscaler sees third-quarter EPS of 39 cents, beating consensus estimates of 31 cents. Revenue guidance of between $396 million and $398 million is ahead of the $387.32-million estimate. 

Shares could be trading lower as the company announced a restructuring plan that wold see a 3% worldwide headcount reduction, and said it expects to incur between $8 million and $10 million in aggregate non-recurring charges.

ZS Price Action: Shares of Zscaler are trading 11.28% lower to $119 according to Benzinga Pro.

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