Bear's Mid-March Update

Something I found about ZS and their burgeoning work with the government:

Remo Canessa: Yes. The budget approvals were approved in December. So we did not see strong Q2 but we do expect to see a very strong second half. We’re well positioned, as Jay mentioned. OUr pipeline is outstanding and growing with the Fed RAMP certs that we have, the highest in the industry, we’re in a really good position.

Jay Chaudhry: Yes. If I may make 2 more comments, 12 of the 15 cabinet-level agencies are ZScaler customers. Now they all started small but it’s a big opportunity for us to grow business. Some of the most sophisticated security agencies like CISA (Cyber Security) that actually mandate security is a ZScaler customer.


Hey Analog, maybe you should at least read the press release before making an assertion like that. Their gross margin was 75%, up 9 points from 66% a year ago. Does that sound like they are cutting prices???

They are gaining market share because they are generally all AI and don’t require their customers to hire a lot of IT people to watch their security. When there is a breach their software not only spots it but it instantly repairs it, rather than just reporting it to IT. That saves their customers a bunch of salary, as well as time.