Fourth Quarter Highlights Revenue grows 21% year-over-year to $719.2 millionAnnual Recurring Revenue ("ARR") grows 22% year-over-year to $3,015 millionCalculated billings grows 32% year-over-year to $1,202.3 millionDeferred revenue grows 30% year-over-year to $2,468.0 millionGAAP net loss of $17.6 million compared to GAAP net loss of $14.9 million on a year-over-year basis Non-GAAP net income of $146.7 million compared to non-GAAP net income of $115.8 million on a year-over-year basis SAN JOSE, Calif., Sep ...

Core Insights - Zscaler has completed the acquisition of Red Canary, aiming to enhance its Security Operations capabilities by integrating Red Canary's threat intelligence and automation with Zscaler's data and SecOps platform [1][3] - Red Canary will initially operate as a separate business unit within Zscaler, leveraging Zscaler's resources while continuing to innovate its Security Operations Center (SOC) capabilities [2] - The integration will combine Red Canary's AI-driven threat management with Zscaler's Data Fabric for Security, creating a comprehensive SOC solution for customers and partners [2][4] Company Developments - Zscaler's CEO, Jay Chaudhry, emphasized that the acquisition will strengthen cyber defenses by utilizing insights from 500 billion daily transactions on the Zscaler Zero Trust Exchange platform [3] - Red Canary's CEO, Brian Beyer, highlighted the potential to reduce investigation and response times significantly by merging their AI-powered threat detection with Zscaler's zero trust platform [4] - Following the acquisition, Red Canary will be branded as "Red Canary, a Zscaler company," indicating a unified approach to security operations [4] Industry Impact - The combined expertise of Zscaler and Red Canary is expected to set a new standard in cybersecurity, enhancing the ability to detect, triage, investigate, and respond to cyber threats more efficiently [3][4] - The acquisition is positioned as a significant advancement for the cybersecurity community, aiming to improve overall security operations [4]

Core Insights - Zscaler has launched a new suite of solutions aimed at enabling customers to adopt Zero Trust Everywhere, enhancing security across branches and multi-cloud environments [1][2][3] - The updates to the Zscaler Zero Trust Exchange™ platform empower organizations to secure their networks against threats like ransomware by making branches and clouds invisible to malicious actors [2][3] Product Innovations - Unified Appliance for Zero Trust Branch: This solution secures communications between various locations and segments OT and IoT devices, eliminating the need for traditional firewalls and reducing complexity and costs [4] - Zero Trust Gateway for Cloud Workloads: A cloud-native service that secures communications from workloads to the internet and between workloads in under 10 minutes, enhancing security in hybrid and multi-cloud environments [4] - Zscaler Microsegmentation for Cloud Workloads: This service provides granular segmentation policies for cloud workloads, protecting critical assets against lateral threats [4] - Zero Trust Exchange for B2B: A platform that facilitates secure collaboration between partner organizations, replacing outdated technologies and enhancing data protection during mergers and acquisitions [4] Strategic Impact - The expanded Zero Trust Everywhere approach allows organizations to modernize their security infrastructure, mitigate risks, and protect data across various environments [5] - Zscaler's solutions are designed to simplify security network infrastructure, making it easier for businesses to scale securely in a rapidly changing threat landscape [3][4]

Core Insights - Zscaler has announced a definitive agreement to acquire Red Canary, enhancing its capabilities in Managed Detection and Response (MDR) and threat intelligence [1][2] - The acquisition aims to integrate Zscaler's AI-driven workflows with Red Canary's expertise, creating a unified Security Operations Center (SOC) [1][3] - Zscaler protects nearly 45% of Fortune 500 organizations and processes over 500 billion daily transactions, establishing itself as a leader in cloud security [2][4] Company Overview - Zscaler operates the world's largest cloud security platform, leveraging a massive data lake to develop advanced AI-driven solutions [2][4] - Red Canary has over 10 years of experience in security operations, recognized as a leader in the Forrester Wave™ for MDR for three consecutive years [2][4] - The integration of both companies is expected to enhance threat detection and response capabilities, addressing common operator pain points [3][4] Strategic Goals - The acquisition is seen as a natural expansion of Zscaler's capabilities, aiming to accelerate the vision of an AI-powered SOC of the future [2][3] - By combining resources, the companies aim to improve the speed and efficiency of threat detection and response, helping organizations tackle modern security challenges [3][4] - The transaction is subject to customary closing conditions and is expected to close in August 2025 [4]

Core Insights - Zscaler's 2025 Phishing Report reveals a significant shift in phishing tactics, with cybercriminals leveraging Generative AI for targeted attacks against critical business functions, emphasizing the need for a Zero Trust + AI defense strategy [2][3] Phishing Trends - Global phishing attempts decreased by 20%, with a nearly 32% drop in the U.S., attributed to improved email authentication standards, yet emerging markets like Brazil, Hong Kong, and the Netherlands are experiencing increased phishing activity [4] - Established markets such as India, Germany, and the UK continue to face persistent phishing threats as attackers adapt to local patterns [4] Attack Methods - Phishing campaigns are increasingly exploiting community platforms like Facebook, Telegram, Steam, and Instagram for brand spoofing, malware distribution, and social engineering attacks, with tech support scams reaching over 159 million hits in 2024 [5][8] - Cybercriminals are utilizing Generative AI to enhance their attacks, creating fake websites and deepfake content to deceive users, particularly targeting sensitive departments like payroll, finance, and HR [6][7] Defensive Strategies - Zscaler's Zero Trust Exchange provides comprehensive protection against evolving phishing threats by securing users, applications, and data throughout the attack chain, highlighting the importance of a proactive, multi-layered defense approach [8][10] - The company emphasizes the necessity of AI-powered defenses to counteract the sophisticated tactics employed by cybercriminals [3][10]