Zscaler Sees Slowing Growth Ahead

Cloud security software provider Zscaler (NASDAQ: ZS) got it mostly right with its fiscal first-quarter report. The company beat analyst estimates for both revenue and earnings, with sales up nearly 50% and adjusted earnings in positive territory.

But Zscaler's guidance wasn't so well received. The company predicted a continued slowdown in revenue growth for the second quarter, a potentially big problem for the stock given its outlandish valuation. Here's what investors need to know.

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Source Fool.com