Company Overview - Rubrik is valued at $15.2 billion and specializes in data security, backup, recovery, and cloud-based protection, particularly relevant in the context of increasing ransomware and data breach risks [3] - The company reported a significant increase in subscription annual recurring revenue (ARR) to over $1.25 billion, up 36% year-over-year, with cloud ARR surging 57% to $1.1 billion [2] Financial Performance - Overall revenue increased by 51% to $310 million, with subscription revenue rising by 55% [1] - Adjusted net loss narrowed to $0.03 from $0.40 in the same quarter last year, and adjusted gross margin improved to 82% from 77% [1] - Free cash flow improved to $57.5 million from a negative $32 million last year, indicating a stronger financial position [6] Market Position and Analyst Sentiment - Analysts predict Rubrik's revenue to grow by 39.2% in 2025 and 25% in 2026, reflecting confidence in the company's growth trajectory [7] - The stock is rated as a "Strong Buy" by 18 out of 21 analysts, with an average target price of $114.95, suggesting a potential upside of 49.8% [8] Investment Activity - Cathie Wood's ARK Next Generation Internet ETF purchased 66,836 shares of Rubrik for $6.6 million, increasing total investment in the company to $35 million [3][4] - Wood's investment strategy focuses on disruptive innovation and long-term growth, aligning with Rubrik's fundamentals and market trends [5][7]

Core Insights - Zscaler, Inc. is a prominent player in the cloud security sector, providing solutions that facilitate secure connections between users and applications [1][2] - The company is positioned in a competitive landscape, contending with major firms like Palo Alto Networks and Fortinet [1] - A recent analysis set a price target of $340 for Zscaler, indicating a potential upside of 25.66% from its trading price of $270.58 [1] Market Performance - Zscaler participated in Citi's 2025 Global Technology, Media, and Telecommunications Conference, showcasing its strategic initiatives [2] - The company's market capitalization is approximately $41.77 billion, with a trading volume of 2,084,784 shares on NASDAQ [2] - Zscaler's stock has experienced significant volatility over the past year, with a high of $318.46 and a low of $153.45 [2] Investor Interest - The ongoing engagement in industry events and analyst attention positions Zscaler as a focal point for investors interested in the growth of cloud security solutions [3]

Core Insights - Zscaler's shares are down 2.9% to $266.49 despite surpassing earnings and revenue estimates with $0.89 per share and $719.23 million in revenue, indicating strong fourth-quarter performance driven by its AI-powered model, although a recent data breach may be affecting post-earnings momentum [1] Group 1: Stock Performance - If the current dip persists, it would mark three consecutive sessions of decline and the third post-earnings slump in the last five reports, representing the worst single-day performance in nearly a month, with an overall decline of 11% over the past three months [2] - The stock is currently facing a downtrend that began in early July, but the 120-day moving average and the $260 level may help contain losses as the stock attempts to regain earlier optimism [2] Group 2: Analyst Sentiment - Despite the decline, Zscaler received upgrades and price-target increases from at least nine firms, including JP Morgan and Barclays Securities, while Scotiabank Securities was among the few to issue a price cut; prior to the recent dip, 32 out of 43 analysts were bullish on the stock [3] Group 3: Options Market Activity - Options traders appear skeptical about a rebound, as the equity's 10-day and 50-day put/call volume ratios rank in the 83rd and 96th percentiles, respectively [4] - There has been significant activity in the options market, with 19,000 puts traded today, which is 14 times the usual amount, indicating heightened bearish sentiment; the most popular contract is the weekly 9/5 250-strike put [5]

Market Overview - U.S. stock markets experienced a "risk off" attitude, with the Dow closing at -0.55%, S&P 500 at -0.69%, and Nasdaq at -0.60% [1] - Goldman Sachs was the worst performer on the Dow, down -1.9%, while Kraft Heinz fell -7%, the largest drop in the S&P 500 [2] Commodity Performance - Gold prices reached a new all-time high, increasing by +2.35% to just below $3600 per ounce [2] - Bitcoin also saw growth, rising +1.88% to $111,313 [2] Company Earnings - Zscaler reported fiscal Q4 results, with earnings of 89 cents per share, beating estimates by 9 cents, and quarterly sales of $719 million, surpassing expectations of $706 million [3] - Zscaler's billings were notably higher than expected, and guidance for the next quarter and full fiscal year was raised, leading to a +5% increase in shares during late trading [3] Economic Indicators - S&P Manufacturing PMI for August was slightly below expectations at +53.0, down -30 basis points from the previous month, while ISM Manufacturing improved to +48.7%, 70 basis points above the prior month [4] - Construction spending for July showed a slight improvement, moving from -0.4% in June to -0.1%, although it remains below expectations [5] Upcoming Reports - The Job Openings and Labor Turnover Survey (JOLTS) for July is expected to remain stable at 7.4 million job openings, consistent with the current labor market trends [6] - Factory Orders for July are anticipated to improve to -1.3% from -4.8% in June, with additional reports on the Beige Book and August Auto Sales expected [7] - Salesforce is expected to report quarterly earnings with +8.2% growth in earnings per share and +8.7% in revenues, having only missed earnings once in the past five years [8]

Core Insights - Zscaler achieved a significant milestone with over $3 billion in Annual Recurring Revenue (ARR) and the highest operating margin in a quarter, driven by demand for its Zero Trust and AI security solutions [3][6][11] - The company reported a 21% year-over-year revenue growth to $719.2 million for Q4 fiscal 2025, with a 22% increase in ARR to $3.015 billion [6][7] - Zscaler's calculated billings grew by 32% year-over-year to $1.202 billion, and deferred revenue increased by 30% to $2.468 billion [6][7] Financial Highlights for Q4 Fiscal 2025 - Revenue reached $719.2 million, a 21% increase from the previous year [6][7] - GAAP net loss was $17.6 million, compared to a loss of $14.9 million in Q4 fiscal 2024, while non-GAAP net income was $146.7 million, up from $115.8 million [6][7] - Cash provided by operations was $250.6 million, representing 35% of revenue, with free cash flow of $171.9 million, or 24% of revenue [7][8] Full Year Fiscal 2025 Financial Highlights - Total revenue for the fiscal year was $2.673 billion, a 23% increase year-over-year [6][8] - GAAP net loss for the year was $41.5 million, an improvement from a loss of $57.7 million in fiscal 2024, while non-GAAP net income rose to $534.8 million from $414.6 million [6][8] - Cash provided by operations for the year was $972.5 million, or 36% of revenue, with free cash flow of $726.7 million, also 27% of revenue [8] Recent Business Developments - Zscaler acquired Red Canary to enhance its AI-driven threat intelligence and automation capabilities, aiming to improve cyber risk management [11] - The company launched AI-powered security innovations, including Zscaler AI Guard, to protect sensitive data and ensure regulatory compliance [11] - Zscaler published a report indicating a 146% increase in ransomware attacks, highlighting the need for a comprehensive Zero Trust strategy [11] Financial Outlook - For Q1 fiscal 2026, Zscaler expects revenue between $772 million and $774 million, with non-GAAP income from operations projected at $166 million to $168 million [10] - For the full year fiscal 2026, revenue is anticipated to be approximately $3.265 billion to $3.284 billion, with non-GAAP income from operations expected to be between $728 million and $736 million [10]

Qualys Enterprise TruRisk Platform - Qualys is transforming its focus to leverage risk analytics for desired business outcomes with the Qualys Enterprise TruRisk Platform[12] - The Qualys Enterprise TruRisk Platform offers comprehensive risk reduction by eliminating cyber risk, saving time, reducing MTTR, and consolidating the IT-security stack[19, 20] - The Qualys Enterprise TruRisk Platform provides a single view across the entire global hybrid-IT environment, consolidating the stack for better security outcomes, with no hardware to buy or manage[30] Market Opportunity and Customer Base - Qualys estimates its current total addressable market at $55 billion in CY2025E, expanding to $79 billion in CY2028E[34] - Qualys has a blue-chip global customer base, including over 10,000 subscription customers[36] - Qualys serves 72% of the Forbes Global 50, 55% of the Forbes Global 500, and 33% of the Forbes Global 2000[36] Financial Performance - Qualys' revenues grew from $490 million in 2022 to $608 million in 2024, with a 11% CAGR[44] - Adjusted EBITDA increased from $219 million in 2022 to $283 million in 2024, representing a 14% CAGR[44] - The Adjusted EBITDA margin was 47% in 2024[44] - Free cash flow was $232 million in 2024, with a free cash flow margin of 38%[49]

Group 1 - Okta's stock dropped 12% after the company provided cautious earnings guidance, which was perceived as a result of "overly high expectations" from investors [1] - Morgan Stanley maintained an "overweight" rating on Okta with a target price of $123, noting that while Q1 metrics exceeded expectations, the guidance for Q2 and fiscal year 2026 was less optimistic due to macro uncertainties [2] - Wells Fargo reiterated a "hold" rating with a target price of $110, citing a solid Q1 performance but a conservative Q2 guidance that fell short of market expectations [3] Group 2 - Jefferies maintained a "hold" rating but lowered the target price from $135 to $130, indicating that while Okta's remaining performance obligations (cRPO) grew 14% year-over-year, it did not meet the high expectations of investors [4] - Analysts noted that Okta's Q2 cRPO guidance was 1% below market expectations and unexpectedly suggested a potential sequential decline for the first time since the company's IPO [4] - On a positive note, Okta's profit margins exceeded expectations, and the company raised its fiscal year 2026 free cash flow guidance to approximately 27% [4]

Group 1 - Okta, a cloud security company, saw its stock drop over 12% in pre-market trading due to disappointing earnings guidance [1]

Core Viewpoint - Zscaler, Inc. will host an innovations briefing for investors on June 3, 2025, during its Zenith Live 2025 event in Las Vegas, Nevada [1][2]. Group 1: Event Details - The innovations briefing is scheduled to start at 11:30 a.m. PT and conclude before 2:00 p.m. PT [2]. - A live webcast and replay of the briefing will be available on the Investor Relations section of the Zscaler website [2]. Group 2: Company Overview - Zscaler is a leader in cloud security, focusing on accelerating digital transformation for customers to enhance agility, efficiency, resilience, and security [3]. - The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications globally [3]. - The platform is distributed across more than 150 data centers worldwide, making it the largest in-line cloud security platform based on SASE [3].

Core Insights - Zscaler, Inc. has appointed Raj Judge as Executive Vice President of Corporate Strategy and Ventures, aiming to drive the company's growth strategy towards achieving $5 billion in Annual Recurring Revenue (ARR) and beyond [1][3] Company Overview - Zscaler is a leader in cloud security, providing a Zero Trust Exchange that protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications globally [5] Leadership Appointment - Raj Judge brings over 25 years of experience in the tech legal and venture capital sectors, having previously served as Senior Partner and Co-Chair at Wilson Sonsini [2] - Judge's expertise in corporate strategy and investment is expected to significantly impact Zscaler's growth and innovation agenda [3] - The appointment reflects Zscaler's commitment to advancing its corporate strategy and long-term vision [3] Strategic Goals - Judge will focus on key growth and investment opportunities, working closely with stakeholders to accelerate innovation and broaden Zscaler's platform for its customers [3][4]