Zscaler ROI

I read a bit on ZSCALER. It seems that they do have their own hardware and software running on the public cloud. (did I get that wrong?).
I noticed that their ROI is negative -11%. That means that they are losing 11 cents on each 1 dollars invested.
Can it be that they are subsiding their customers right now?
Is that situation is comparable to UBER that is actually subsidizing their customers by undercharging?
UBER exit strategy is that one day autonomous cars will make them very profitable.
What is the exit strategy for Zscaler?
https://finviz.com/quote.ashx?t=ZS&ty=c&ta=1&p=d…
The same question applies to several other holdings like OKTA. Go to FINVIZ.com and observe for your self.

I am tired of talking about Zscaler’s product. NO! They are not running on the public cloud. No they are not subsidizing their clients. In fact they have actually been profitable (despite themselves). They mean to remedy that profitableness as they need to spend it to bring in even more customers.

I have no idea what you mean by “exit” strategy. What is the exit strategy for Amazon, Mongo, Pure storage…

Enough has been spoken about Zscaler technology. Do your own digging. As for the rest what the heck are you even talking about?

Eeeeekkkkk!

Tinker

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How do explain their negative ROI?

I am just cutting this thread short. Please read the investing information tutorials on this board to help you get up to speed and to better understand growth investing. Perhaps you might like to apply that question to SHOP that has gone from $4 billion market cap to $30 billion market cap in 4 years time.

Please educate yourself on the basics of this forum and that will help all of us and yourself to get the most out of this forum.

Thank you.

Tinker

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This was a simple question, you could simply answer that.
It seems that any doubt about the companies being held by Saul is off topic.
Did I get that wrong this time?

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I read a bit on ZSCALER. It seems that they do have their own hardware and software running on the public cloud. (did I get that wrong?).

This cloud business can get a bit confusing. Zscalar runs a private cloud that services their clients. I call it private because clients don’t run their stuff on it like on AWS or on Azure.

https://ips.zscaler.net/cenr

I noticed that their ROI is negative -11%. That means that they are losing 11 cents on each 1 dollars invested.

To understand the SaaS business model I suggest getting up to speed with David Skok

David Skok of Matrix Partners: Driving SaaS Success Using Key Metrics

https://www.youtube.com/watch?v=bCBccKfG9U0

Is that situation is comparable to UBER

UBER, not being SaaS, is not comparable.

Denny Schlesinger

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shukisasson,

We doubt our investments all the time. The problem is the complete irrelevancy and naivety of your question. EVERY great growth company in its early years has a negative ROI! SHOP, as an example still does and yet they are nearly a 10 bagger in 4 years. Mongo is way negative ROI and yet it is up I don’t know 3 to 400% since it went public (very nice for us, thank you!). Twilio…they are all practically negative ROI.

Your question simply has no relevance to the investments we discuss on this forum. If you want ROI you may want to go to a board that focuses more on value or mature company investments.

We recently had a thread on is it better to be profitable or to grow fast. Charles Schwab, in his memoirs, stated unequivocally and adamantly, it is far far far far better to grow fast (as long as you will someday turn that into profits - as I add to it).

If you think ROI should be our criteria as to what we invest in, please give us a framework that supports this position you are taking as to how ROI should be a primary consideration when investing in earlier stage growth companies.

That is up to you. If you find out it is true, then please fill us all in on it. Otherwise, your question has zero relevance to investing in the stocks we invest in here. And btw, even after the recent crash most of the stocks we invest in her are still up 2, 3, 4, 5 or more x since 2015. So please don’t tell us market “darlings” that are profitless with negative ROIs.

If you can prove that is relevant for us, you are welcome to do so.

Tinker

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Hi Shuk, giving you the benefit of the doubt despite your repeated posts over the last few months sounding like trolling, you mean well and are trying to help. You are a self-proclaimed value investor who isn’t invested in any of these growth stocks. That’s great. To each their own. We do have value investors come and post here and contribute to the conversation, and it’s great to have alternate views. If you haven’t already, take Tinker’s advice and read thoroughly the knowledge base and the various discussions about specific stocks before posting such posts as your original post above.

You seem like a smart person, but your post is like someone asking questions about how to do addition in a calculus class. It doesn’t sit well with everyone else, and I’m sure you understand why it seems like trolling. Particularly when the addition classes have been posted and are easily accessible.

25 Likes