RTTNews | May 26, 2021 07:22AM EDT

07:22 Wednesday, May 26, 2021 (RTTNews.com) - Shares of cloud security company Zscaler, Inc. (ZS) are up more than 10% in pre-market trade on Wednesday following upbeat third-quarter results.

The company reported adjusted earnings of $21.37 million or $0.15 per share in the third quarter, up from $10.34 million or $0.07 per share in the comparable quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share for the quarter.

However, net loss in the third quarter widened to $58.46 million or $0.43 per share from net loss of $19.34 million or $0.15 per share a year ago.

The company had Stock-based compensation expense and related payroll taxes of $65.18 million in the quarter, up from $29.08 million last year.

Revenue for the quarter increased 60% year-over-year to $176.4 million.

Looking forward to the fourth quarter, revenue is expected in the range of $185 million to $187 million and adjusted earnings to be in the range of $0.08 to $0.09. Analysts expect the company to report earnings of $0.09 per share on revenue of $174.43 million for the quarter.

For the full-year, the company sees revenue in the range of $660 million to $664 million and adjusted EPS to be $0.47 per share. The consensus estimate for revenue is at $639.16 million and for EPS is at $0.40.

Separately, the company announced its decision to acquire deception technology startup Smokescreen Technologies.

Zscaler believes that the acquisition will build on its capability to precisely detect the most sophisticated, highly targeted attacks, ransomware, and lateral movement attempts.

ZS, closed Tuesday's trade at $172.74, down 0.95%. The stock is currently at $191.27.

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