[DigitalToday reporter Chi-gyu Hwang (황치규)] Cloud security company Zscaler posted fiscal second-quarter results that beat expectations, but its shares fell 9 percent as the performance fell short of hopes, SiliconANGLE reported on Feb. 26 (local time).

Zscaler reported earnings per share of $1.01 and revenue of $815.8 million in the latest quarter.

Annual recurring revenue (ARR) rose 25 percent from a year earlier to $3.359 billion, and new ARR totaled $155.5 million. Investors appeared to have expected stronger growth signals. Zscaler shares fell 9 percent on the day.

Zscaler also announced its AI security solution, Zscaler AI Protect. The company said Zscaler AI Protect protects AI assets and provides AI access security and vulnerability testing features.

Zscaler also acquired browser security firm SquareX, but investors appeared to have expected differentiated results in the AI market, SiliconANGLE reported.

In its third-quarter outlook, the company forecast earnings per share of $1.00 to $1.01 and revenue of $834.0 million to $836.0 million. It also raised its full-year outlook, but a failure to show steeper growth amid an AI boom was cited as a reason for the share decline, SiliconANGLE reported.