Core Viewpoint - Zscaler's stock has declined approximately 10% in 2024 despite reporting solid revenue growth and increasing guidance, raising questions about the justification for the price dip and potential buying opportunities [1][2]. Financial Performance - For the fiscal first quarter ended October 31, Zscaler reported a revenue increase of 26% year over year, reaching $628 million, surpassing the previous guidance of $604 million to $606 million [3]. - Adjusted earnings per share (EPS) rose to $0.77 from $0.55 a year ago, exceeding the forecasted range of $0.62 to $0.63 [5]. - The company generated operating cash flow of $331.3 million and free cash flow of $291.9 million, ending the period with $2.7 billion in cash and short-term investments, alongside $1.15 billion in debt [6]. Growth Metrics - Calculated billings growth was only 13% year over year, totaling $516.7 million, which disappointed investors, although deferred revenue increased by 27% to $1.78 billion [4]. - Zscaler maintained a dollar-based net retention rate of 114%, indicating strong growth within its existing customer base [7]. Guidance and Forecast - Zscaler raised its full-year revenue guidance to a range of $2.623 billion to $2.643 billion, up from $2.6 billion to $2.62 billion, and adjusted EPS guidance to $2.94 to $2.99 from $2.81 to $2.87 [8][9]. - For fiscal Q2, the company forecasts revenue between $633 million and $635 million, with adjusted EPS between $0.68 and $0.69, aligning with analyst expectations [11]. Market Position and Strategy - The company is experiencing strong upsells, particularly in its Zscaler Private Access (ZPA) business, and is seeing traction in emerging solutions like Zscaler Digital Experience (ZDX) and AI analytics [7][13]. - Zscaler is focusing on new AI solutions and has secured a deal to protect Microsoft Copilot data, indicating potential growth in data security [13]. Valuation - Zscaler trades at a forward price-to-sales multiple of approximately 9.6, which is considered attractive given its revenue growth rate exceeding 25% [14].

Zscaler TodayZSZscaler$206.36 +7.72 (+3.89%) 52-Week Range$153.45▼$259.61Price Target$224.84Add to WatchlistZscaler NASDAQ: ZS shares tanked more than 7% in premarket trading following its FQ1/CQ3 earnings report, opening a textbook buy-the-dip opportunity. The results failed to impress the analysts, but that is the only thing wrong with the report. The analysts had set a high bar for the company to beat, and the results were as expected, which is excellent. The takeaway is that sentiment took a hit but no ...

Core Viewpoint - Zscaler Inc's shares fell despite reporting positive fiscal first-quarter results, with analysts expressing mixed sentiments regarding the company's future performance and leadership changes [1][12]. Financial Performance - Zscaler reported a 13% year-on-year increase in billings for the fiscal first quarter, although this represents a slowdown from the previous quarter's 27% growth [3][6][10]. - Non-GAAP earnings were reported at 77 cents per share, exceeding the consensus estimate of 63 cents, while revenues reached $628.0 million, surpassing the consensus of $606.1 million [5]. - The company raised its full-year revenue guidance, reflecting a projected growth of 21%, down from the 26% year-on-year growth reported for the fiscal first quarter [5][7]. Management Changes - CFO Remo Canessa's retirement has introduced uncertainty regarding Zscaler's commitment to its fiscal 2025 billings target, with analysts noting that this overshadowed the quarterly results [3][5][8]. - The transition in leadership may lead to a "wait-and-see" approach from investors until confidence in the new CFO is established [8]. Market Position and Outlook - Analysts believe Zscaler remains a leader in the SASE market, which is not yet saturated, and express optimism about the company's potential for recovery in the latter half of fiscal 2025 [4][6]. - The company has shown improved sales productivity and customer engagement, which could support future growth [6][10]. - There is potential for 19% billings growth in the first half of the year, with expectations of 25% growth in the second half, contingent on the renewal of contracts [11].

Company Overview - Zscaler is a leading company in the cybersecurity industry, recognized for its rapid growth and innovation in zero-trust security solutions [1] - The company utilizes a cloud-native approach, distinguishing itself from traditional cybersecurity providers [1] Industry Insights - The cybersecurity sector is advancing quickly, with Zscaler positioned as a prominent player due to its unique offerings [1]

Zscaler stock dropped despite an earnings beat.In this video, I will cover Zscaler's (ZS -4.34%) recent earnings report and explain why the dip is worth buying. Watch the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Dec. 2, 2024. The video was published on Dec. 2, 2024. ...

Key TakeawaysShares of Zscaler fell Tuesday, a day after it reported that billings declined sequentially and issued current-quarter guidance at the low end of estimates.The cybersecurity firm also announced that CFO Remo Canessa would be stepping down.Zscaler's first-quarter fiscal 2025 profit and revenue beat forecasts. Zscaler (ZS) shares fell 5% Tuesday, a day after the cloud-based cybersecurity platform reported a slowdown in billings and issued underwhelming guidance. In addition, it announced the comp ...

Zscaler (ZS) reported first-quarter fiscal 2025 non-GAAP earnings of 77 cents per share, which outpaced the Zacks Consensus Estimate by 22.2%. Moreover, the bottom line experienced a significant 40% rise driven by higher revenues and efficient cost management.Zscaler’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 2.9%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Zscaler’s first-quarter fiscal 2025 revenues of $628 mil ...

Group 1 - Zscaler Inc's stock is down 4.8% to $198.53 following a disappointing forecast for the fiscal second quarter, despite beating earnings and revenue expectations for the fiscal first quarter [1] - The stock has fallen below the $200 mark, which previously acted as a resistance level, and is currently testing support at its 40-day moving average, with a year-to-date decline of 11% [2] - A shift in sentiment in the options market may exert additional downward pressure on Zscaler's stock, indicated by a 50-day call/put volume ratio of 1.96, which is in the 82nd percentile of annual readings [3] Group 2 - Today's options activity shows significant trading volume with 19,000 calls and 15,000 puts exchanged, which is 15 times the intraday average, with the most active contract being the weekly 12/6 210-strike call [4]

Zscaler Inc ZS reported better-than-expected fiscal first-quarter financial results after the market close on Monday.Zscaler reported first-quarter revenue of $628 million, beating the consensus estimate of $606.19 million. The cybersecurity company reported adjusted earnings of 77 cents per share, beating analyst estimates of 63 cents per share, according to Benzinga Pro."Growing customer engagements and strong sales execution drove a solid first quarter with all metrics exceeding our guidance. The combina ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...