Zscaler reported a narrowed loss of $3.37 million as revenue soared, driven by AI initiatives. The company announced it would restructure and cut 3% of its workforce to reallocate resources toward AI and growth areas.

Despite the loss, the strong revenue growth signals increased demand for its cloud security services. The restructuring aims to streamline operations and focus on high-potential segments.

Zscaler's AI investments are paying off, with the company leveraging AI to enhance its security platform and attract more customers. The workforce reduction is part of a broader strategy to optimize efficiency.

The company remains optimistic about future growth, citing AI as a key driver. The narrowed loss marks progress toward profitability, even as Zscaler continues to invest heavily in innovation.