Core Insights - Zscaler (ZS) is expected to report quarterly earnings of $0.69 per share, reflecting a year-over-year decline of 9.2% [1] - Revenue projections stand at $634.07 million, indicating a 20.8% increase from the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the past 30 days, suggesting stability in analyst projections [1] Revenue Estimates - Analysts estimate 'Revenues- Direct Customers' to be $63.60 million, representing a 43.2% increase from the prior-year quarter [4] - 'Revenues- Channel Partners' are forecasted to reach $569.57 million, indicating an 18.5% increase from the previous year [4] Other Key Metrics - 'Billings' are projected to be $728.57 million, up from $627.60 million reported in the same quarter last year [5] - 'Remaining Performance Obligations' are expected to be $4.38 billion, compared to $3.61 billion a year ago [5] - The 'Dollar-Based Net Retention Rate' is projected at 114.8%, down from 117% in the previous year [5] Stock Performance - Zscaler shares have shown a return of -5.3% over the past month, compared to a -2.4% change in the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 3 (Hold), indicating expected performance in line with the overall market [6]

Core Insights - Zscaler, Inc. has launched Zscaler Asset Exposure Management, a solution aimed at improving how organizations manage their cyber asset risks, forming part of their Continuous Threat Exposure Management offerings [1][4] - The solution consolidates data from numerous sources to provide organizations with a precise inventory of assets and visibility into security gaps, thereby mitigating cyber risks [1][3] Group 1: Challenges in Asset Management - Organizations often face difficulties in maintaining an accurate inventory of their assets, leading to reliance on spreadsheets, which complicates risk assessment and remediation prioritization [2] - This challenge is particularly critical in regulated industries like healthcare and financial services, where non-compliance can incur significant fines [2] Group 2: Features of Zscaler Asset Exposure Management - Built on Zscaler's Data Fabric for Security, the new solution integrates data from hundreds of sources, including Zscaler's cloud security platform, to provide a comprehensive view of assets and associated risks [3] - The platform processes over 500 billion security transactions daily, offering extensive visibility into customer assets and risks [3] - More than 50 million devices utilize Zscaler agents to collect and share telemetry, enhancing visibility into assets across branches and factories [3] Group 3: Benefits and Expectations - Zscaler Asset Exposure Management enables organizations to create an accurate asset inventory, identify coverage gaps, enhance data accuracy, and mitigate risks through automated workflows [6] - Customers can expect significant time savings in manual work and improved asset risk management capabilities [5] - The integration of unique telemetry with third-party data enhances asset visibility and security insights, providing a competitive advantage in identifying asset risks [5][6]

Group 1 - Zscaler, Inc. has established a strong reputation due to its multi-tenant distributed cloud security platform [1] - The company has had a solid start in 2025, with its stock showing positive performance year-to-date [1]

Company Performance - Zscaler's stock closed at $214.67, reflecting a -1.01% change from the previous day, underperforming the S&P 500's gain of 0.24% [1] - Over the last month, Zscaler's shares increased by 13.06%, outperforming the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37% [1] Upcoming Financial Results - Zscaler is set to announce its earnings on March 5, 2025, with analysts expecting earnings of $0.69 per share, indicating a year-over-year decline of 9.21% [2] - The consensus estimate for quarterly revenue is $634.07 million, representing a 20.78% increase from the same period last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates project earnings of $2.99 per share and revenue of $2.64 billion, reflecting changes of -6.27% and +21.58% respectively from the previous year [3] - Recent changes to analyst estimates for Zscaler may indicate shifting business dynamics, with positive revisions suggesting a favorable business outlook [3] Valuation Metrics - Zscaler currently holds a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate increasing by 34.4% in the past month [5] - The company has a Forward P/E ratio of 72.56, which is higher than the industry's average Forward P/E of 67.06 [5] Industry Context - Zscaler's PEG ratio stands at 5.38, compared to the average PEG ratio of 3.07 for the Security industry, indicating a premium valuation [6] - The Security industry is part of the Computer and Technology sector, which has a Zacks Industry Rank of 20, placing it in the top 8% of over 250 industries [6]

Core Insights - A strategic alliance has been formed between Zscaler, Inc. and Ernst & Young LLP (EY US) to address network architecture challenges with secured cloud-delivered services [1][2] - The alliance aims to enhance security and resilience against cyberattacks for organizations transitioning to mobile and digital environments [2][3] Company Overview - Zscaler is recognized as a leader in cloud security, providing the Zscaler Zero Trust Exchange™ platform, which connects users, devices, and applications securely [9] - EY operates in over 150 countries, offering services across assurance, consulting, law, strategy, tax, and transactions, focusing on building trust and long-term value for clients [4] Strategic Objectives - The alliance combines EY's consulting expertise with Zscaler's cloud security solutions to support organizations in their digital transformation journeys [3][9] - The partnership aims to simplify IT operations, enhance security, and improve user experience while driving business value [3][8] Market Position - Zscaler's Zero Trust Exchange™ is noted as the world's largest in-line cloud security platform, distributed across more than 150 data centers globally [9]

Core Insights - Zscaler, Inc. has rebounded sharply in 2025 with a year-to-date stock increase of 15.7% after a challenging 2024 where it declined by 18.5%, outperforming key cybersecurity peers [1] - The company is positioned as a leader in the zero trust cybersecurity market, which is expected to grow at a CAGR of 16.7% through 2032, driven by increasing cyber threats and regulatory requirements [4] - Zscaler's financial performance remains strong, with Q1 fiscal 2025 revenues increasing by 26% year-over-year to $628 million, and a record operating margin of 21% [8][10] Company Positioning - Zscaler dominates the zero trust cybersecurity space, with a robust financial foundation and unmatched leadership in this area [3][4] - The company's Zero Trust Exchange platform is designed to replace outdated security architectures, and recent innovations enhance its competitive edge [5] - Zscaler's aggressive acquisition strategy, including the purchase of Airgap Networks and Avalor, has expanded its capabilities and solidified its market position [6][7] Customer Base and Market Dynamics - Zscaler has a growing customer base, with 585 customers generating over $1 million in annual recurring revenues, including a significant portion of Fortune 500 and Global 2000 companies [11] - The company's net dollar retention rate of 114% indicates strong customer loyalty and potential for upselling [11] - Zscaler is well-positioned to benefit from the migration to cloud environments and the increasing adoption of AI-driven cybersecurity solutions [12] Financial Outlook - The Zacks Consensus Estimate indicates strong double-digit revenue growth for fiscal 2025 and 2026, with a projected long-term EPS growth of 13.5% [13][14] - Despite a projected year-over-year decline in EPS for fiscal 2025, the outlook for fiscal 2026 shows double-digit percentage growth [13] Valuation - Zscaler trades at a forward 12-month price-to-sales ratio of 11.02, significantly higher than the industry average of 5.61, reflecting its premium valuation justified by growth and market leadership [15] - The company's innovative AI-driven security solutions and expanding market opportunities make it a compelling investment for long-term exposure to the cybersecurity sector [17] Conclusion - Zscaler is recognized as the leader in the zero trust market, with robust revenue growth and significant enterprise adoption, making it a strong candidate for investment [18]

Group 1 - The focus is on identifying small cap companies with strong fundamentals and growth potential, large cap companies experiencing temporary setbacks, and stable companies with solid dividend yields and growth potential [1] - The analyst has a strong quantitative background with a Ph.D. in Chemical Engineering and an MBA, indicating a robust foundation for conducting market research [1] Group 2 - The article expresses the author's own opinions and indicates a beneficial long position in the shares of ZS, suggesting a positive outlook on this particular stock [2] - There is no compensation received for the article other than from Seeking Alpha, which may imply an independent analysis [2] Group 3 - Seeking Alpha clarifies that past performance does not guarantee future results, emphasizing the importance of conducting individual research before making investment decisions [3] - The platform does not provide recommendations or advice on investment suitability, highlighting the need for investors to assess their own situations [3]

Core Insights - Zscaler has experienced a significant decline of over 20% following its second quarter fiscal year 2024 earnings report released on February 29, 2024, indicating investor discomfort with the challenges the company is facing [1] Company Summary - The company operates in the technology sector, specifically focusing on cybersecurity solutions [1] - The recent earnings report has raised concerns among investors, leading to a prolonged decline in stock performance [1] Industry Context - The technology industry, particularly cybersecurity, is facing headwinds that may impact company performance and investor sentiment [1]

Core Viewpoint - Zscaler, Inc. is set to release its second quarter fiscal year 2025 earnings on March 5, 2025, after market close, followed by an investor conference call to discuss the results [1]. Group 1: Earnings Release Details - The earnings report will be available after the market closes on March 5, 2025 [1]. - An investor conference call is scheduled for 1:30 p.m. Pacific time (4:30 p.m. Eastern time) on the same day [1]. - Participants can join the call via a provided dial-in number after registration [2]. Group 2: Conference Call Participation - It is recommended to dial in at least 10 minutes prior to the start time of the conference call [3]. - A live webcast of the conference call will be accessible on the Zscaler website under the "Events & Presentations" section [3]. Group 3: Company Overview - Zscaler is a leader in cloud security, facilitating digital transformation for customers to enhance agility, efficiency, resilience, and security [4]. - The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications globally [4]. - The platform is distributed across more than 150 data centers worldwide, making it the largest in-line cloud security platform [4].

Zscaler, Inc. (ZS) , a pioneer in Zero Trust cybersecurity, has experienced a 21.9% decline in its stock price over the past year, underperforming the S&P 500, Zacks Computer and Technology sector and key competitors like Palo Alto Networks, Inc. (PANW) , Fortinet, Inc. (FTNT) and Cisco Systems, Inc. (CSCO) . While this underperformance has raised concerns, it also presents a unique opportunity for investors to capitalize on Zscaler’s strong fundamentals, innovative edge and significant market potential.One ...