Zscaler, Inc. (NASDAQ: ZS) rose over 18.48% in pre trading session on Monday after the company publishes preliminary unaudited financial results for the third quarter of fiscal year 2023, which concluded on April 30, 2023. Because of the early nature of the announcement, all data in this release are approximate.
Chairman and CEO of Zscaler, Jay Chaudhry stated that their preliminary third-quarter performance surpassed the upper end of their guidance range. In this adverse macro climate, they enjoyed a solid end to the quarter as the high ROI of deploying the Zscaler Zero Trust ExchangeTM platform continues to connect with customers and prospects. Their customer engagement is strong, and their platform is expanding with innovations that address their customers’ real-time IT challenges. They look forward to providing further information at their future results conference call.
Adjustments for stock-based compensation expense and related employer payroll taxes of approximately $111 million, amortization expense of acquired intangible assets of approximately $3 million, and restructuring and other charges of approximately $5 million represent the midpoint of the range of estimates.
The preliminary results and projections for non-GAAP income from operations for the company exclude stock-based compensation expense and corresponding employer payroll taxes, amortization expense of acquired intangible assets, and restructuring and other charges. The corporation revised its definition of non-GAAP income from operations in the third quarter of fiscal 2023 to include restructuring and other expenses.
Please see the “Explanation of Non-GAAP Financial Measures” section of this press release for more information on why they believe these non-GAAP measures provide useful information to investors, how management uses these measures, and some of the limitations associated with their use.
