A driver to their accelerating growth is large transformation deals. Large deals are split 50/50 between new and existing customers.
They spend a lot of time discussing hiring sales people. ZS was cagey about the numbers, just said sales headcount would continue to grow higher.
They’ve reached $1B in ARR.
With enterprise, they’re in 8 of the top 10 largest non-Chinese banks, and 7 of the largest insurance companies.
What works for companies with 2000 employees, works for companies of 300,000 employees.
Sources of budget for the ZS deals are network equipment and transmission–more and more the internet is the company’s network (because of zero trust).
Min 35:00 CEO Chaudry discussing CDN providers entering security space to find places they can grow. Akamai and NET. “Cloudflare is making noise but we’ve yet to see them in any meaningful deal in the field. They are used to sitting in front of servers, selling to content departments” Not to the CTOs/CIOs that ZS sells to.
Min 37:00 answering how long is the runway to replace/transform legacy security solutions. Chaudry talks about Blue Coat (hardware, on premise proxy). They owned 80% of Fortune 500 companies. ZS beats them because Blue Coat couldn’t come up with a good multi-tenant, cloud based solution. Chaudry still sees them in 40% of F500 companies so a lot of runway left. In this top 25 deal reviews, the majority of those transformation deals are about displacing Blue Coat.
If you don’t want to watch the whole webcast, fast forward to the end, where Citi’s Boolani asks ZS basically: you’re sandbagging, how much are you sandbagging? And the CFO Canessa answers “we’re being prudent, we’ve always been prudent, we’re not going to change.” And Boolani says “I know that’s true.” That was fun.