11:48 AM EDT, 05/31/2024 (MT Newswires) -- Zscaler ( ZS ) delivered "a very impressive quarter" as it remains a leading player in the cybersecurity sector, especially as the transition to cloud-based security solutions gains momentum, Wedbush Securities said in a note Friday.

Analysts, including Daniel Ives, said that the company is in the initial stages of expanding its zero-trust architecture as implementing zero-trust security across users, devices, and workloads continues to be a top priority for businesses in 2024 and beyond.

The company's billings increased by 30% year-over-year to $628 million, up from the Street's estimate of $584 million, reflecting that underlying deal metrics remain strong, particularly when it comes to Zscaler Internet Access, Zscaler Private Access, and Zscaler Digital Experience, resulting in significant wins, including seven-figure deals, the analysts said.

Zscaler's ( ZS ) fiscal 2024 billings guidance is now projected to be between $2.60 billion to $2.61 billion, higher than the previous estimate of $2.55 billion to $2.57 billion. This indicates the strong performance the company is experiencing despite ongoing challenges in the deal environment, the analysts said.

For fiscal Q4, the company expects revenue between $565 million and $567 million, slightly below the Street's estimate of $565.2 million. However, its earnings per share guidance of $0.69 to $0.70 exceeds the Street's estimate of $0.68 as Zscaler ( ZS ) is leveraging the current market conditions by expanding its customer base through cross-selling and upselling opportunities, the analysts said.

Wedbush is maintaining its outperform rating and $260 price target on Zscaler ( ZS ). The company's shares rose past 6.5% in recent trading activity.

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