Zscaler, Inc. (NASDAQ:ZS) shares closed more than 15% lower on Friday despite the company’s strong Q4 results, with EPS coming in at $0.13, better than the Street estimate of $0.11. Quarterly revenue rose 63% year-over-year to $255.6 million, beating the consensus of $241.56 million.

According to the analysts at RBC Capital, the company delivered a good quarter with revenue growth reaching a 3-year high, but the beat was not the scale we'd seen previously, particularly in billings which decelerated to 59% compared to 71% in Q3.

Full 2022-year revenue/billings guidance was raised to 56%/46% growth from 49%/39% previously as the land and expand motion and demand both remain strong.