By Roshan Fernandez

Zscaler reported higher third-quarter revenue and slightly increased its full-year sales guidance.

The San Jose, Calif.-based cybersecurity company reported on Thursday a third quarter loss of $4.1 million, or 3 cents a share, for the three-months ended April 30. That compares with a profit of $19.1 million, or 12 cents a share, a year earlier.

Excluding one-time items, per-share earnings were 84 cents, beating the 76 cents that analysts were expecting, according to FactSet.

Revenue grew to $678 million from $553.2 million a year earlier. Analysts surveyed by FactSet had forecast sales of $666.5 million, which was within the company's previously issued guidance.

The higher revenue comes as an increasing number of customers adopt the company's Zero Trust Exchange platform, a cloud-based security platform, Chief Executive Jay Chaudhry said.

Zscaler is also increasing its investment in AI security, so customers can use public GenAI apps and private AI apps, Chaudhry said.

For fiscal year 2025, the company now expects revenue of $2.659 billion to $2.661 billion, up from it previous guidance of $2.64 billion to $2.65 billion. Zscaler also revised its forecast for adjusted earnings per share to $3.18 to $3.19, from $3.04 to $3.09.

The company expects fourth-quarter revenue of $705 million to $707 million, just short of the $707.2 million analysts are projecting, according to FactSet. Adjusted earnings per share are projected at 79 cents to 80 cents, topping the 77 analysts expect.

Shares rose 4.5% to $262.49 in after-hours trading.