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Shares of Zscaler (ZS) fell more than the broader market on Wednesday, as investors digested the company's latest quarterly results. The cloud-based security firm reported a narrower-than-expected loss, but concerns over its slowing growth rate and increased competition weighed on the stock.

Zscaler's stock dropped 6.3% to close at $83.99, underperforming the S&P 500's 0.5% decline. The company's shares have now fallen about 20% from their 52-week high, reached in February.

The company's first-quarter loss came in at 14 cents per share, narrower than the expected loss of 18 cents per share. Revenue, however, fell short of estimates, rising 24% year over year to $143.7 million.

While the top-line growth remained strong, Zscaler's guidance for the current quarter was slightly below expectations. The company expects revenue to rise 23% year over year to $147.5 million, which is below the Street's estimate of $150.5 million.

Investors also grew concerned about the company's slowing growth rate, as its year-over-year revenue growth decelerated to 24% in the latest quarter from 34% in the prior quarter.

Additionally, Zscaler faces increasing competition in the cloud-based security space, with companies like Palo Alto Networks (PANW) and Check Point (CHKP) also vying for market share. This competition, combined with the slowing growth rate, may have contributed to the stock's decline.

Despite the near-term concerns, Zscaler's long-term growth prospects remain attractive, driven by the increasing adoption of cloud-based security solutions. The company's strong track record of execution and its leadership position in the market also bode well for its future performance.