Shares in Zscaler Inc. rose slightly in late trading after the cybersecurity company reported fiscal third-quarter earnings and revenue ahead of market expectations.

For the quarter ended April 30, Zscaler reported a profit before costs such as stock compensation of 17 cents per share, up from 15 cents in the same quarter of last year. Revenue jumped 63%, to $286.8 million. Analysts had expected an adjusted profit of 11 cents per share on revenue of $271.4 million.

Cash provided by operations came in at $77.2 million, or 27% of revenue, compared with $73.4 million or 42% of revenue in the third quarter of fiscal 2021. As of the end of the quarter, deferred revenue was $818.7 million, up 65% year-over-year.

Highlights in the quarter included Zscaler launching Security Service Edge innovations to minimize the attack surface while stopping threats with private app protection, integrated deception and privileged remote access capabilities for business and operational technology systems.

As a founding member of the Cloud Security Alliance, Zscaler, along with partners CrowdStrike Holdings Inc. and Okta Inc., also announced the foundation of the Zero Trust Advancement Center that brings together research and education at the CSA to be disseminated online and through global chapters.

“Enterprises continue to consolidate point products in favor of our integrated zero trust security platform, resulting in larger, multi-year commitments to Zscaler,” Jay Chaudhry, chairman and chief executive officer of Zscaler, said in a statement. “We delivered 63% revenue growth and 54% billings growth while also generating a strong free cash flow margin of 15% for the third quarter.”

Looking forward, Zscaler predicted fourth-quarter adjust profit of 20 to 21 cents on revenue of $304 million to $306 million. Analysts had expected 17 cents per share on revenue of $291.02 million.

For the full fiscal year 2022, the company predicts an adjusted profit of 64 to 65 cents on revenue of $1.078 billion. That’s also ahead of analysts’ predictions of 55 cents and $1.05 billion.

The figures were strong across the board, but despite the earnings beat, investors were not that surprised by the numbers. Zscaler shares rose only a little over 1% after the bell.

Image: Zscaler