Zscaler (ZS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Zscaler is a buy due to strong government cybersecurity spending tailwinds, especially from the US and Europe, amid rising global cyber threats. The company's Zero Trust Exchange platform positions it as a crucial partner for defense agencies, with robust adoption potential as cyber warfare escalates. Despite high valuation and lack of profitability, Zscaler's strong revenue and FCF growth, plus a solid cash position, support its aggressive growth targets.
Zscaler's sales momentum and billings acceleration set it apart in a challenging software market, justifying my reiterated 'Buy' rating despite valuation concerns. AI-driven demand and a large, underpenetrated TAM support ZS's premium valuation and continued growth, with new products and pricing models fueling adoption. Q3 results showed 23% revenue growth, strong billings acceleration, and robust large-customer expansion, highlighting the company's execution and resilience amid macro uncertainty.
Software - Infrastructure Industry | Technology Sector | Jagtar Singh Chaudhry CEO | XDUS Exchange | US98980G1022 ISIN |
US Country | 7,348 Employees | - Last Dividend | - Last Split | 16 Mar 2018 IPO Date |
Zscaler, Inc. is a global cloud security company that specializes in delivering comprehensive security solutions to protect users, workloads, IoT, and OT devices across various industries. Founded in 2007 and initially known as SafeChannel, Inc., the company rebranded to Zscaler, Inc. in August 2008 and is headquartered in San Jose, California. Zscaler is dedicated to enabling secure digital transformation for businesses, ensuring secure access to externally managed applications, including SaaS applications and internet destinations, as well as managed applications hosted internally in data centers and clouds.
Zscaler offers a suite of security solutions designed to provide comprehensive protection and enhanced digital experiences for enterprises across various sectors. These include:
The foundation of Zscaler's platform consists of Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers, which work together to provide a secure, scalable, and high-performance infrastructure for all its services.