RBC Capital analysts provided their outlook on Zscaler, Inc. (NASDAQ:ZS) ahead of the company’s upcoming Q2/23 earnings announcement on March 2.
The analysts expect a slight upside to results, though less than prior quarters given an uneven macro environment in addition to the incremental risk from their prior sales reorganization and lower job postings.
The analysts look for (1) a slight upside to Q2 revenue vs. guidance of $364-366 million and a Street estimate of $366 million, and (2) a slight upside to billings vs. a Street estimate of $491 million.
The analysts believe guidance is de-risked as it assumed no December budget flush. They believe guidance could move slightly higher through the year in addition to 150-180 bps margin expansion in fiscal 2023.