Zscaler reports higher Q2 operating expenses

By Thomson Reuters Feb 29, 2024 | 3:17 PM

(Reuters) -Cybersecurity firm Zscaler reported higher operating expenses in the second quarter, overshadowing a lift in its annual revenue forecast and dragging the company’s shares down about 5% in extended trading.

The role of AI in cybersecurity is evolving as vendors like Zscaler are integrating these technologies into existing offerings and introducing new solutions.

Zscaler is facing competition from rival Palo Alto Networks, which plans to offer up to six months of free services to customers switching to its cybersecurity platform.

Its second-quarter total operating expenses rose 24% to $453.3 million from $365.2 million last year.

The company expects annual revenue to be between $2.118 billion to $2.122 billion, compared with previous forecast of $2.09 billion to $2.10 billion.

(Reporting by Harshita Mary Varghese and Juveria Tabassum; Editing by Alan Barona)