Dec 2 (Reuters) - Zscaler ( ZS ) on Monday raised its

annual revenue forecast after beating estimates for quarterly

revenue on strong demand for its cybersecurity services, but its

shares fell more than 6% in extended trading as its report

failed to impress investors.

The company also announced the retirement of its chief

financial officer, Remo Canessa.

Enterprises around the world are boosting their spending on

cybersecurity solutions in the wake of a rise in digital threats

and high-profile hacks, which in turn is benefiting

cybersecurity firms such as Zscaler ( ZS ).

The second quarter of 2024 recorded the highest increase in

global cyber attacks in the last two years, according to Check

Point data.

However, Zscaler's ( ZS ) forecast for second-quarter revenue,

which was largely in line with Wall Street estimates, failed to

keep up with investor expectations, said Michael Ashley

Schulman, chief investment officer at Running Point Capital.

Zscaler ( ZS ) raised its forecast for fiscal 2025 revenue to

between $2.62 billion and $2.64 billion from its prior view of

$2.60 billion to $2.62 billion.

It raised its forecast for annual adjusted earnings per

share to a range of $2.94 to $2.99, compared with $2.81 to $2.87

expected previously.

The company expects second-quarter revenue between $633

million and $635 million, compared with estimates of $633.8

million, according to data compiled by LSEG.

Revenue for the quarter ended Oct. 31 came in at $627.96

million, beating estimates of $606.2 million.

The company's net loss per share was 8 cents for the

first quarter, compared with a loss of 23 cents a year ago.

Zscaler ( ZS ) faces stiff competition in the cybersecurity

industry from larger rivals such as Palo Alto Networks ( PANW ),

which reported strong quarterly results last month.