i have a really hard time selling positions and so i still hold onto Zscaler as i wait for billings to increase as customer count and retention rates evolve.
i appreciate, have printed out for my Zscaler file, and refer you to the posts by wsm007 in June: https://discussion.fool.com/Message.aspx?mid=35139370
Discussing billings decelerating
and by sarksnz and rmtzp last March: https://discussion.fool.com/Message.aspx?mid=35090172
also discussing Billings deceleration concerns.
This post does not directly Focus so much on billings and is more Focused on managements ability to, IMHO, navigate these challenges and fulfill the tenets laid out in their mission statement
Zscaler Zero Trust Exchange Platform is the worlds largest cloud security platform and is unique in that it primarily protects cloud workloads by controlling access. ( whereas some other platforms primarily protect these same workloads by detecting and then responding to threats.)
i like the management team for their clear communication and positive can do attitudes.
A whopping 41% of company shares are held by insiders … so i rest easy knowing that management has high expectations for Zscaler success.
On their investor sight, Zscaler’s mission statement says,
“To anticipate, secure, and simplify the experience of doing business, transforming today and tomorrow.”
i found a fact sheet with more detail:
“Zscaler’s mission is to empower organizations to realize the full potential of the cloud and mobility by securely connecting users to applications from any device, anywhere.”
‘Zscaler Internet Access (ZIA): Delivers your security stack as a service from the cloud, eliminating the cost and complexity of traditional secure web gateway approaches.’
‘Zscaler Private Access (ZPA): Ensures that only authorized users have access to specific private applications by creating secure segments of one between individual devices and apps.’
CEO, Chairman and Founder Jay Chaudhry is Fond of reiterating their mission , emphasizing their exceptional growth trajectory including Government contracts.
In the Q3 '22 earnings call he emphasized that Zscaler has the highest level of FedRAMP certifications for ZIA and ZPA.
He further highlighted 2 new customer wins this quarter where FedRAMP was an important factor:
"1. First, a defense contractor that purchased ZIA and ZPA in a 6-year seven-figure ACV deal.
2. Second, a DOD unit also purchased ZPA for secure access to SAP instances in AWS Gov cloud.
Two important considerations for our ongoing success in the Federal market are:
- First, ZPA is the only cloud security service with FedRAMP High authorization for Zero Trust Remote Access. We connect users to applications and not to the network, eliminating lateral threat movement, a core principle of zero trust architecture that can’t be achieved by next gen firewalls or cloud VPNs.
- Second, ZIA’s proxy architecture, which inspects TLS-encrypted traffic at scale delivering superior security "
Further, they increased their revenue guidance to approximately $1.078 billion, representing 60% growth YoY; While also Increasing calculated billings to a range of $1.425 billion to $1.430 billion representing 53% growth YoY.
Now this all makes sense to me that the Government would choose a Zero Trust platform , like Zscaler, that controls access rather than choosing a platform that deals with problems after the fact by detecting and then responding to threats.
i would think that many other large companies/contacts would also choose Zero Trust for similar reasons.
And so i Focus on the mission statement and the invested management team, along with platform improvements and product expansions leading to large Future contracts, and look to the next few quarters for improvement.
For more color on the Zscaler platform initiatives and innovations, check out CMF_muji
new ZS products review: https://discussion.fool.com/Message.aspx?mid=35134359
along with my own addendum Zscaler’s Zenith 2022 event:
Zscaler is late in the earnings batting order and doesn’t report until September.
Best, kevin c
long of Zscaler, Inc.
please click my screen name for disclosed holdings