Market Performance and Valuations - The stock market has delivered back-to-back gains of over 20% in the past two years, leading to stretched valuations and investor nervousness near all-time market highs [1] - The priority for the year is to rotate more of the portfolio, indicating a strategic shift in investment focus [1] Analyst Background and Industry Exposure - Gary Alexander has combined experience covering technology companies on Wall Street and working in Silicon Valley, providing deep industry insights [1] - He serves as an outside adviser to several seed-round startups, giving him exposure to emerging industry themes [1] - His contributions on Seeking Alpha since 2017 and syndication to platforms like Robinhood highlight his influence in the investment community [1]

Zscaler, Inc. (ZS) , a leading provider of Zero Trust cybersecurity solutions, has seen its stock decline 16.1% year to date (YTD), underperforming the broader market, including the Zacks Computer and Technology sector and the S&P 500. The stock has also underperformed its peers in the cybersecurity space, including Fortinet, Inc. (FTNT) , Palo Alto Networks, Inc. (PANW) and Cisco Systems, Inc. (CSCO) over the same time frame.YTD Price Return PerformanceImage Source: Zacks Investment ResearchWhile Zscaler s ...

Core Insights - Zscaler partners with Nokia to deploy the Zscaler Zero Trust Exchange platform, enhancing Nokia's security, operational efficiency, and cloud capabilities [1][8] - The Zscaler platform is a cloud-native security solution that reduces the attack surface by connecting users directly to applications without exposing the corporate network [2][4] Legacy Challenges - Nokia previously used traditional hardware and virtual firewalls, which complicated uniform security control across various locations and platforms [3] - The shift to a cloud-first model necessitated a more agile security architecture capable of supporting Nokia's evolving needs [3] Future-Focused Approach - Zscaler's platform offers extensive public edge coverage and an application-centric approach to zero-trust security, with over 160 globally distributed data centers [4][13] - Key components of the deployment include Zscaler Internet Access, Zscaler Private Access, Zscaler Digital Experience, and Zscaler Data Protection [5] Transformative Benefits - Nokia anticipates significant operational and security benefits from the phased implementation of the Zscaler platform, allowing for scalability and rapid adaptation [6][7] - Initial rollout phases have already shown improved end-user connectivity and productivity [7]

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].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________________ _____________________________________ ___________________________________________________ FORM 10-Q _____________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2024 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition peri ...

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 ...

Key Findings: Malware, phishing and cryptominers account for nearly 90% of all encrypted threats observed in ThreatLabz analysisManufacturing was the target of 42% of encrypted attacks, making it the most- targeted industryThe United States and India are the top targets of encrypted attacks SAN JOSE, Calif., Dec. 05, 2024 (GLOBE NEWSWIRE) -- Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today published its Zscaler ThreatLabz 2024 Encrypted Attacks Report, which explores the latest threats blocke ...

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].

Zscaler (NASDAQ: ZS ) is one of the most prominent and fastest-growing companies in the rapidly advancing cybersecurity space. It is also a global leader in zero-trust security. Additionally, unlike traditional cybersecurity providers, Zscaler implements its unique and highly convenient cloud-native approach, makingAre You Getting The Returns You Want? Invest alongside the Financial Prophet's All-Weather Portfolio (2023 47% return) and achieve optimal results in any market.The Daily Prophet Report provides ...

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. ...