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Added to YB: 2025-03-10

Pitch date: 2025-03-06

ZS [neutral]

Zscaler, Inc.

+15.3%

current return

Author Info

Compounding Your Wealth dives into detailed analyses of earnings reports, shares transparent reviews, and cultivates a long-term mindset essential for understanding company fundamentals, business models, and diverse investment styles. My goal is to nurture a multibagger portfolio by focusing on growth companies, adopting a long-term perspective, and employing a systematic, process-driven approach. Sign up for the newsletter.

Company Info

Zscaler, Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zscaler Internet Access, which provides threat protection, cloud sandbox, and cloud browser isolation; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, reduced attack surface, and browser isolation; Zero Trust Firewall; Cloud Sandbox; and Zero Trust Browser.

Market Cap

$40.1B

Pitch Price

$204.93

Price Target

N/A

Dividend

N/A

EV/EBITDA

1.1K

P/E

-955.42

EV/Sales

13.63

Sector

Software

Category

growth

Show full summary:
Zscaler Q4 2024 Earnings Analysis

ZS (earnings overview): Q2 rev $648M (+23% YoY), beat est 2.2%. ARR $2.7B (+23% YoY). Op margin 21.7% (+2.0 PPs). FCF margin 22.1% (+2.9 PPs). EPS $0.78 (+13% est). DBNR 115%. 620 $1M+ customers (+24.7% YoY). AI-driven growth: ZDX +45% YoY, data protection +40% YoY. Raised FY guide. Challenges: Net new ARR -29.7% YoY, CAC up, federal deals lumpy.

Read full article (8 min)