Core Viewpoint - Zscaler Inc (NASDAQ:ZS) is recognized as a leading high-growth cybersecurity stock, with analysts maintaining a bullish outlook following its recent acquisition of SquareX and the introduction of its AI Security Suite [1][2][4]. Group 1: Recent Developments - On February 5, Zscaler announced a deal to integrate its Zero Trust security directly into popular browsers like Chrome and Edge, simplifying protection for unmanaged devices [2]. - The company is enhancing its Zero Trust platform by utilizing lightweight browser extensions to secure both corporate and BYOD devices, building on its success in replacing traditional VPNs and VDI [3]. - Zscaler introduced an AI Security Suite on January 27, aimed at helping enterprises manage and secure their use of artificial intelligence, providing visibility and controls for AI tools and applications [4]. Group 2: Company Overview - Zscaler Inc. is a prominent American cloud security firm that offers cybersecurity solutions based on a Zero Trust model, enabling secure connections for users, devices, and applications from any location without relying on traditional network perimeters [5].

Core Insights - Allot Ltd. (ALLT) shares have increased by 15.2% over the past three months, significantly outperforming the Zacks Computer and Technology Sector, which saw a mere 0.5% appreciation [1] - The stock has outperformed competitors such as Check Point Software (CHKP), Fortinet (FTNT), and Palo Alto Networks (PANW), with Fortinet gaining 4.1%, while CHKP and PANW lost 10.6% and 20.4%, respectively [1] SECaaS Growth - Allot's SECaaS (Security as a Service) business is becoming the primary growth driver, with annual recurring revenue (ARR) increasing by 60% year-over-year in Q3 2025 [5] - SECaaS accounted for approximately 28% of Allot's total revenues in Q3, with expectations to rise to 30% if current trends persist [6] - The increase in SECaaS revenue is attributed to higher adoption rates from telecom partners and an increase in end users signing up for security services [5][6] Revenue and Guidance - Allot raised its revenue guidance for 2025 to a range of $100-$103 million, up from the previous estimate of $98-$102 million [8] - The company also expects SECaaS ARR growth to exceed 60% year-over-year, an increase from the prior guidance of 55-60% [9] - The Zacks Consensus Estimate for 2026 indicates a revenue growth of 13.3% [9] Valuation Metrics - Allot's stock is currently trading at a forward price-to-sales (P/S) ratio of 4.27X, which is lower than the sector average of 6.54X and its peers, including CHKP (6.85X), FTNT (8.4X), and PANW (10.27X) [11][15] - This valuation discount may appeal to long-term investors despite the competitive landscape [15] Competitive Landscape - Allot faces significant competition from established players in the network traffic management and security sectors, including Check Point Software, Fortinet, and Palo Alto Networks [16] - Competitors are continuously innovating their offerings, which could impact Allot's market position [16][20][19] Conclusion - Allot is experiencing robust growth in its SECaaS business, leading to increased revenues and improved earnings visibility [21] - The rising interest in new cybersecurity offerings presents opportunities for upselling to existing customers, enhancing the company's growth prospects [21]

Disclaimer This presentation has been prepared by KT Corp.(the "Company") in accordance with K-IFRS. This presentation contains forward-looking statements, which are subject to risks, uncertainties, and assumptions. This presentation is being presented solely for your information and is subject to change without notice. No presentation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented. The Company ha ...

Core Insights - Leidos is modernizing IT operations for the Compartmented Enterprise Services Office (CESO) within the Defense Information Systems Agency (DISA) to enhance information sharing across the Department of War and the intelligence community [1][2] Group 1: Contract Details - The contract awarded to Leidos is valued at $142 million, focusing on integrated engineering, software development, operations, and cybersecurity services to optimize CESO's secure web applications [2] - The modernization includes scalable, AI-driven capabilities aimed at streamlining operations, improving secure information access, and advancing Zero Trust compliance [2] Group 2: Strategic Importance - This effort is designed to enhance decision-making, user experience, and mission readiness, thereby strengthening the digital backbone that supports national defense and intelligence operations [3] - Leidos' role is critical in operating, sustaining, and defending the Department of War's most vital networks, supporting U.S. defense missions globally [3] Group 3: Company Overview - Leidos is a leader in industry and technology, serving government and commercial customers with innovative digital and mission solutions, reporting annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025 [5]

Core Insights - Zscaler has acquired SquareX to enhance its Zero Trust capabilities in browser security for the AI era, allowing organizations to secure any browser on any device without needing third-party browsers [1][4] Company Developments - The acquisition of SquareX aims to redefine browser security by enabling lightweight extensions in standard browsers like Google Chrome and Microsoft Edge, thus eliminating the reliance on traditional VPNs and VDIs [1][3][4] - Zscaler's Zero Trust architecture, exemplified by Zscaler Private Access™ (ZPA™), is designed to provide unmatched security and device posture checks to millions of users, setting a new standard for secure enterprise connectivity [2][4] Industry Context - The shift from legacy VPNs and VDIs to a true Zero Trust architecture is driven by the need for enhanced security in a landscape increasingly threatened by cyberattacks [2][4] - Zscaler's integration with SquareX will allow organizations to secure SaaS and private applications across both managed and BYOD devices, promoting productivity while implementing precise Zero Trust policies tailored to specific risk profiles [4]

Core Viewpoint - Netskope is set to release its financial results for the fourth quarter and fiscal year 2026 on March 11, 2026, after market close, indicating a focus on transparency and communication with investors [1]. Financial Results Announcement - The financial results will cover the period ending January 31, 2026, showcasing the company's performance over the fiscal year [1]. - A live conference call will be held on the same day at 2:00 pm PT / 5:00 pm ET to discuss these results, emphasizing the company's commitment to engaging with stakeholders [1]. Investor Relations - A live webcast of the conference call and related materials will be available on the company's investor relations website, ensuring accessibility for investors [2]. - A replay of the webcast will also be provided, allowing for further review of the financial discussions [2]. Company Overview - Netskope is recognized as a leader in modern security and networking for the cloud and AI era, addressing the needs of security and networking teams [3]. - The company provides optimized access and real-time, context-based security for users, devices, and data, highlighting its comprehensive approach to security [3]. - Over 30% of Fortune 100 companies utilize the Netskope One platform, indicating strong market trust and adoption [3].

Core Insights - Zscaler has introduced new AI security innovations aimed at enabling enterprises to securely build, deploy, and govern AI applications while maintaining visibility and control [1][4] Group 1: AI Security Challenges - Many enterprises lack a comprehensive view of their AI applications and services, which limits their understanding of AI exposure and associated risks [2] - Traditional security models are inadequate for the unique behaviors of AI traffic, which can lead to vulnerabilities; Zscaler's ThreatLabz report indicates that most enterprise AI systems could be compromised in just 16 minutes [2] Group 2: New Innovations and Solutions - Zscaler's AI Security Suite provides a detailed inventory and dependency map of AI assets, enabling organizations to adopt AI technologies more securely [3] - The suite addresses enterprise AI security challenges through three core use cases, focusing on visibility, governance, and secure access [4][5] Group 3: Governance and Compliance - Zscaler supports alignment with frameworks like the NIST AI Risk Management Framework and the EU AI Act, enhancing governance for global AI adoption [6] - The company is expanding its defense capabilities with new features such as a secure automation gateway and AI Deception to counter model-based attacks [6] Group 4: AI Asset Management and Security - AI Asset Management provides comprehensive visibility for CISOs and IT teams to detect shadow AI and prioritize risks [7] - Secure Access to AI enables safe use of sanctioned AI services with Zero Trust controls, while Secure AI Infrastructure protects AI development throughout its lifecycle [7]

Core Insights - Rapid AI adoption is creating a significant security gap, necessitating organizations to implement AI security platforms based on Zero Trust principles [1][2][12] AI Adoption Trends - AI usage is expanding across all business functions, with Finance & Insurance accounting for 23% of AI/ML traffic, while Technology and Education sectors saw year-over-year transaction growth of 202% and 184% respectively [4][12] - The number of applications driving AI/ML transactions quadrupled to over 3,400, indicating a rapid increase in complexity and reduced centralized visibility [12] Security Vulnerabilities - 100% of enterprise AI systems tested were found vulnerable to breaches, with critical vulnerabilities identified in an average of 16 minutes, and 90% of systems compromised in under 90 minutes [5][12] - AI/ML activity surged by 91% year-over-year, leading to a total of 18,033 terabytes of data transferred to AI applications, which poses a significant target for cybercriminals [7][9][12] Data Exposure Risks - Unmanaged embedded AI features in enterprise applications are creating critical data exposure risks, as these features often operate without oversight [8][12] - ChatGPT alone was associated with 410 million Data Loss Prevention (DLP) policy violations, highlighting the urgent need for AI governance [10][12] Recommendations for Security - Organizations are advised to adopt an intelligent Zero Trust architecture to mitigate risks associated with AI-driven cyber threats [3][11] - Continuous verification and least-privileged access should be enforced to eliminate attack surfaces, while all traffic, including encrypted data, must be inspected to stop threats in real time [13][11]

Financial Data and Key Metrics Changes - Gross revenue for the third quarter totaled $2.6 billion, representing a roughly 10% decline year-over-year and a 7% decline on a revenue ex-billable basis [20][21] - Adjusted EBITDA for the third quarter was $285 million, translating to an Adjusted EBITDA margin of 10.9% [23] - Net income for the third quarter was $200 million, a 7% increase year-over-year, while adjusted net income was $215 million, an increase of about 9% from the prior year [24] Business Line Data and Key Metrics Changes - The national security portfolio declined about 1% year-over-year, but grew about 4% when adjusting for the impact of the government shutdown [21] - The Civil business experienced a significant decline of about 28% year-over-year, with expectations for stability moving forward [21][51] - Net bookings for the third quarter totaled $888 million, resulting in a quarterly book-to-bill ratio of 0.3x [21] Market Data and Key Metrics Changes - Funded backlog fell 10% year-over-year, but ended the calendar year with a record year-end backlog of over $38 billion, up about 2% from the prior year [22] - The qualified pipeline for fiscal year 2027 stands at nearly $53 billion, which is 12% higher than the fiscal year 2026 pipeline at the same point last year [22][29] Company Strategy and Development Direction - The company is focusing on three priorities: reducing costs, accelerating the transition to outcome-based contracting and product sales, and concentrating investments on growth vectors like cyber, national security, partnerships, and AI [7][12] - A new partnership with Andreessen Horowitz aims to co-create unique commercial technology for national security and public safety, with Booz Allen committing to deploy up to $400 million in a16z's late-stage venture fund [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational and strategic trajectory, anticipating continued change in a dynamic environment [16] - The demand for national security technology and expertise remains robust, with optimism about the Civil business beginning to reignite [30] Other Important Information - The company is transitioning to fixed-price and outcome-based models, which are expected to create cost savings for the government and support margin expansion over the medium to long term [10] - The company recognized a $7 million pre-tax gain from the divestiture of DARPA's SETA work, which is excluded from non-GAAP adjusted income [24] Q&A Session Summary Question: End market expectations for FY27 - Management indicated that defense and intelligence are expected to grow, while Civil is anticipated to remain flat, with potential for recovery in the future [34][36] Question: Cost reduction plan - The cost reduction actions were completed during the quarter, with some impact expected in Q4, but the full effect will be felt next fiscal year [44][46] Question: Funded backlog and growth in fiscal 2027 - Management noted that awards are starting to accelerate, with strong funding activity observed in December and January, positioning the company for growth [75][76] Question: Competition from new players - The competitive landscape has evolved, with new commercial competitors emerging, but the company is leveraging unique relationships with tech firms to create opportunities [77][78] Question: Changes in selling to the government - The company has become more agile in its approach, focusing on commercial partnerships and outcome-based solutions to drive growth [54][56]

Core Insights - 80% of IT leaders reported increased expectations from senior leadership over the past year, yet only 38% believe their current systems can meet the new demands of AI [1][4] - A significant communication gap exists between senior leaders and I&O teams, with 63% of I&O leaders feeling disconnected from strategic IT discussions [2][4] IT Infrastructure and AI Demands - Only 18% of I&O leaders are confident in their team's ability to meet performance, resilience, and security expectations in the AI era [1] - 65% of I&O leaders believe IT infrastructure is more critical to organizational operations than ever before, but priorities still focus on long-standing challenges like security and performance of remote access technologies [2] Leadership Expectations and Challenges - 83% of I&O leaders feel that expectations on them have intensified, with 61% noting their CEO's frustration over the lack of transparency in IT infrastructure [4] - I&O leaders perceive a misalignment in KPI prioritization, with a majority believing that C-suite expectations regarding performance, resilience, and security are unrealistic given current systems [4] Recommendations for I&O Leaders - Translate infrastructure decisions into business outcomes to better align with C-suite expectations [5] - Engage more actively in strategic planning to design future-ready infrastructure [5] - Advocate for architectural simplicity to avoid reactive fixes and improve overall IT effectiveness [5] - Create ongoing visibility for senior leaders through transparent reporting [8] - Position I&O as a facilitator of safe and rapid AI adoption to build trust with C-level executives [8]