RBC Capital analysts provided their outlook on Zscaler (NASDAQ:ZS) ahead of the Q3/23 earnings, scheduled to be announced today after the market close.
In early May, the company announced positive preliminary Q3 results noting they expect to come in above the high-end of guidance for both the top-line and profitability with a key being billings acceleration from Q2. Specifically, management increased its 2023 revenue/billings guidance by $28.5 million/$32 million, or more/in line with the preliminary Q3 midpoint beat of $20 million/$31 million, respectively.
As such, the focus remains on the competitive landscape, macros, and the ability to consolidate security spend and any thoughts on 2024 expectations. The analysts reiterated their Outperform rating and $155 price target.