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Cybersecurity company Zscaler stock pops after earnings

Yahoo Finance Live anchors discuss fourth-quarter earnings for Zscaler.

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- Let's talk Zscaler as well. Shares of the cybersecurity software company seeing a pop of 13% after topping estimates in the fourth quarter from that company. And the company here too also coming out with the forecast that was ahead of estimates. That's after fourth quarter results beat estimates on both the top and the bottom line.

For the full year now, Zscaler looking for earnings per share of at least $1.16. That's $0.10 better than the consensus forecast. Now there's been some talks that sort of cybersecurity companies would be resistant in a period of downturn. That even if you're a corporation and you're going to be cutting back on spending, security is not something that you're willing to cut on.

And maybe this gives some credence to that idea.

- Well the alternative is you get hacked and then--

- Sure, which costs you a lot more.

- Which costs you a lot.

- That's the Zscaler sales pitch, I imagine.

- You want to get hacked? Can't turn off our service. But I can't help but to laugh at this by a friend of the show, Dan Ives over at Wedbush, noting this quarter and guidance from Zscaler will be a major relief for the Bulls as the core fundamental strength of the company is enabling the company to power through the softer macro environment in an impressive Josh Allen-like fashion.

Of course, Josh Allen is the popular Buffalo Bills quarterback. So Dan Ives, always looking at those football puns in there.

- Yes, especially now that we're kicking off football season. Very appropriate there that Ives got that in there. So Zscaler trading higher, and really like, I think sort of complicating the picture when it comes to enterprise software.

- Looks what we heard from Okta.

- Yeah.

- The stock got slaughtered. Talking about slowdown, here's Zscaler blowing out of the water. I think Billings up 57%. Beat the Street's estimates on Billings by 10%. It's huge.

- Right. So what does that tell us, then, about enterprise software that we have seen-- as you talked about recently, we have seen many of these names really get hit much more sharply than the broader market. There's a lot of concern about retrenchment and spending and what that means for these companies.

And then you have these outliers that seem to be-- I mean, listen, DocuSign is not knocking it out of the park, by any means. But it just shows it's not a monolith.

- Yeah. I've been all week tracking the Citi Global tech conference. And just the commentary coming out of there from a lot of the software names there, it doesn't appear to be any improvement, near-term in demand. In fact, at least when it pertains to chip companies, things seem to be getting just incrementally worse.

We had Intel come out here and lower its guidance slightly for the third quarter. So no real improvement. The next bogey mark for me on the space is Salesforce. Dreamforce is back in person, the alliance will be there live at the end of the month. What does that company say-- what does Marc Benioff say about demand intraquarter. I'm sure he will have a lot to say.