Zscaler Datacenters

Zscaler’s investor web site states they have 100 data centers distributed world wide. On their latest quarterly earnings report under Assets / Property and equipment they post $19,765,000. 100 data centers divided by 19,765,00 equals $197,650. My question is what does Zscaler mean by a data center?

In mind i pictured a data center filled with servers or computing hardware of some sort. Don’t think you get that for $197,650 per center.

Was hoping that 100 data centers would add to their moat but at $197,650 a pop don’t think it adds much to their moat.

If any of you tech guys can educate me it would be most appreciated.
For all I know I may be looking at the wrong line on their quarterly earnings report.

Kindest Regards,


There are a few things that may be at play here. Actual building values may or may not be on balance sheet, depending on whether they own the building or if they lease, and if a lease, what kind of lease it is (operating vs. capital). Also, equipment gets depreciated and the amount on the balance sheet should be net of depreciation expense already taken. (Side note - there is a new accounting standard for leases that requires many that were formally off balance sheet to now be put on balance sheet so these assets are going to increase. Formally you could only find info on operating leases in the footnotes to the financials.)



I believe you mis-read:

“Designed for the world of cloud, which has no walls, Zscaler acts as a policy engine deployed across 100-plus data centers to securely connect the right user to the right applications – ZIA for Internet and SaaS, and ZPA for internal applications in your data center or the cloud. We believe we have the right architecture and are the best choice for securing the cloud and mobile-first world.”

They are “deployed” in 100-plus data centers. They don’t own them.

Does that help you?

All holdings and some statistics on my profile page



I found a web-based competitor to Zscaler! Morgan Stanley invested $35 million in them, they have sold the service to one large bank (50,000 seats they say), and best I can find they had $35 million in revenues last year, less than 1/5th of Zscaler’s revenues.

I doubt that they will be much of competition, but worth knowing that there is another commercial company out there that is stating they are all web based security.

They are in the “visionary” square, which is bottom left corner I think, which would put them in the #3 out of 4 squares for Gartner, but they found it something to brag about. The next step up would be “contender” and then “leader” that only Zscaler and Symantec/Blue Coat are in.