Welcome to our dedicated page for Zscaler news (Ticker: ZS), a resource for investors and traders seeking the latest updates and insights on Zscaler stock.
Overview of Zscaler
Zscaler is a cloud-native cybersecurity company that specializes in enabling organizations to securely transform their networks and applications for a mobile and cloud-first world. By harnessing the power of a comprehensive Zero Trust Exchange platform, Zscaler delivers advanced cybersecurity solutions designed to secure access to both internal and external applications, and its architecture is built around a 100% cloud-delivered model that enhances user experience and simplifies security management.
Core Business Areas and Services
Zscaler offers two primary service strands: Zscaler Internet Access and Zscaler Private Access. The former provides secure connectivity for external applications and Internet-based services, while the latter delivers secure access to internal, private applications without the need for legacy VPN solutions. Both services rely on a robust Zero Trust framework that minimizes risk by strictly verifying user and device credentials before granting access, thereby reducing the surface for cyberattacks.
Technology and Operational Excellence
At the heart of Zscaler’s operations is its global security cloud, which collects and processes trillions of signals daily from diverse endpoints and applications. This capability allows the company to offer granular threat intelligence and real-time security updates across a distributed network of data centers around the world. The platform’s architecture is specifically designed to address common cyber threats, including phishing, ransomware, and advanced persistent threats, by leveraging sophisticated AI and machine learning algorithms. The integration of cloud-native data analytics with a Zero Trust approach allows Zscaler to deliver continuous, comprehensive monitoring and rapid threat detection.
Value Proposition in a Competitive Landscape
In today’s cybersecurity environment, traditional security models have proven inadequate in managing the expansive attack surface introduced by mobile devices and remote work. Zscaler distinguishes itself by providing an agile, scalable, and fully cloud-delivered security solution that bypasses the limitations of legacy network appliances. Its innovative approach to securing digital transformation initiatives positions it favorably against competitors who rely heavily on hybrid or hardware-dependent security models. Additionally, Zscaler’s partnerships with industry players and its integration with leading platforms enhance its credibility and highlight its commitment to evolving cybersecurity challenges.
Market Position and Industry Impact
Zscaler operates within the broader cybersecurity and IT infrastructure markets, serving large enterprises and government agencies across more than 185 countries. The company’s focus on a SaaS-based delivery model aligns well with the growing trend of digital transformation, where agility, real-time threat mitigation, and improved user experience are paramount. With a robust development of threat intelligence through its ThreatLabz research, Zscaler continuously refines its solutions to address the dynamic nature of cyber risks. Its content-rich research, ranging from AI-driven cybersecurity challenges to phishing and ransomware reports, demonstrates its deep expertise and industry leadership in the cyber defense space.
Detailed Analysis of the Zero Trust Model
The Zero Trust security model is central to Zscaler’s approach. This model operates on the principle of never trusting and always verifying, ensuring that every connection is scrutinized regardless of the network origin. This is particularly relevant in modern enterprise environments where remote work and BYOD policies have blurred traditional network perimeters. Zscaler’s implementation of Zero Trust is supported by continuous analytics, adaptive security policies, and a cloud-first mentality that together mitigate lateral movement of threats and reduce the risk of data breaches.
Security Research and Threat Intelligence
Zscaler’s ThreatLabz team is integral to maintaining the platform’s cutting-edge defenses. Their regular publications, including reports on AI security, phishing, ransomware, and mobile/IoT threats, offer critical insights into evolving cyber threats. These detailed analyses not only inform Zscaler’s technology enhancements but also provide valuable guidelines for enterprises seeking to fine-tune their own security postures. The platform’s ability to analyze billions of transactions and integrate AI-driven insights highlights the technical sophistication and real-time responsiveness that sets Zscaler apart in the competitive cybersecurity marketplace.
Integration and Ecosystem
Integrations with major industry competitors and complementary technology providers further enhance Zscaler’s offering. For example, collaborations with platforms such as Google Workspace and CrowdStrike illustrate how Zscaler’s Zero Trust architecture can be seamlessly embedded into broader security ecosystems. This interoperability ensures that organizations can benefit from consistent, holistic security coverage, irrespective of the diverse array of applications, devices, and cloud environments in use. Through these integrations, Zscaler not only reinforces its security delivery but also simplifies complex IT environments by consolidating multiple security functions into a singular, scalable cloud service.
Operational and Security Benefits
- Enhanced Security: By eliminating reliance on legacy VPNs and leveraging a zero trust framework, Zscaler drastically minimizes the potential for lateral movement by threat actors.
- Superior User Experience: The cloud-native delivery model ensures that users experience fast, secure connections regardless of their location or device.
- Simplified IT Management: Organizations benefit from a reduction in on-premise infrastructure costs and streamlined security operations through an integrated cloud security platform.
- Scalable Protection: Zscaler’s global architecture is designed to adapt as enterprise requirements evolve, supporting growth and digital transformation initiatives seamlessly.
Conclusion
Overall, Zscaler presents a robust, cloud-native solution tailored for modern network security that addresses the evolving challenges of digital transformation. Its comprehensive approach, combining Zero Trust principles with state-of-the-art AI and cloud analytics, enables enterprises to secure their environments with greater agility and confidence. This detailed, layered protection strategy has established Zscaler as a critical player in the cybersecurity landscape, providing essential insights and actionable security measures through continuous threat research and ecosystem integration.
Zscaler (ZS) reported strong Q2 FY2025 financial results with revenue reaching $647.9 million, up 23% year-over-year. The company's calculated billings grew 18% to $742.7 million, while deferred revenue increased 25% to $1,878.5 million.
The company reduced its GAAP net loss to $7.7 million from $28.5 million year-over-year, while non-GAAP net income rose to $127.1 million. Operating cash flow was $179.4 million (27% of revenue), and free cash flow reached $143.4 million (22% of revenue).
For Q3 FY2025, Zscaler expects revenue between $665-667 million and non-GAAP net income per share of $0.75-0.76. The full-year FY2025 guidance projects revenue of $2.640-2.654 billion and calculated billings of $3.153-3.168 billion.
Zscaler (NASDAQ: ZS), the cloud security leader, has announced its management team's participation in several upcoming investor conferences in March 2025. The schedule includes:
- Morgan Stanley Technology, Media and Telecom Conference in San Francisco on March 6, 2025 at 10:00 a.m. PST
- Susquehanna Travel, Tech + Gambling Forum (Virtual) on March 7, 2025
- Loop Capital Markets 2025 Investor Conference (Virtual) on March 10, 2025
- Stifel Technology 2025 Conference in New York City on March 11, 2025
- Cantor Global Technology Conference in New York City on March 12, 2025
Most events will feature one-on-one investor meetings. Webcasted sessions will be accessible through Zscaler's Investor Relations website at ir.zscaler.com.
Zscaler has announced Zscaler Asset Exposure Management, a new application extending its Continuous Threat Exposure Management (CTEM) offerings. This solution addresses the challenge organizations face in maintaining accurate asset inventories and assessing security risks.
Built on Zscaler's Data Fabric for Security, the platform integrates data from hundreds of sources, including Zscaler's cloud security platform that processes over 500 billion security transactions daily. With telemetry from more than 50 million devices using Zscaler agents, the solution provides comprehensive visibility into assets across branches, factories, and multi-cloud environments.
Key capabilities include creating accurate asset inventories, identifying security coverage gaps, enhancing data accuracy, and triggering automated remediation workflows. Combined with Zscaler Risk360 and Unified Vulnerability Management, it offers a comprehensive exposure management solution.
EY and Zscaler have announced a strategic alliance aimed at addressing network architecture challenges through secured cloud-delivered services. The partnership combines EY's consulting expertise with Zscaler's Zero Trust Exchange™ platform to help organizations strengthen their security posture and build resilient infrastructure against cyberattacks.
The alliance focuses on supporting companies in their digital transformation journey towards a mobile and cloud-first world, offering solutions for secure connections between users and applications, regardless of device, location, or network. Key benefits include improved visibility and control in the cloud, distributed architecture for centralized management, and simplified administration with reduced IT costs.
Zscaler (NASDAQ: ZS) has announced it will release its second quarter fiscal year 2025 earnings after market close on Wednesday, March 5, 2025. The company will host an investor conference call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) on the same day to discuss the results.
Investors can join the earnings call through a webcast available at ir.zscaler.com under the 'Events & Presentations' section. Those wishing to join by phone must register in advance to receive a dial-in number and personal PIN. Participants are advised to dial in at least 10 minutes before the start time.
Zscaler (NASDAQ: ZS) has announced native integration of its Zero Trust Network Access (ZTNA) service within RISE with SAP. The company's Zscaler Private Access (ZPA) for SAP, delivered through the Zscaler Zero Trust Exchange platform, enables SAP customers to simplify cloud migration without traditional VPN risks.
According to Zscaler's 2024 VPN Risk report, 56% of organizations have experienced cyberattacks exploiting VPN vulnerabilities in the past year. The integration allows native zero trust connectivity to SAP S/4HANA Cloud applications across multi-cloud or hybrid cloud deployments.
Key benefits include secure cloud access by eliminating traditional firewalls and VPNs, natively supported Zero Trust protection within RISE with SAP environment, and secure access for workforce and business partners. The solution provides seamless client-based and client-less Zero Trust connectivity for employees and third parties accessing SAP applications and resources.
Nokia has selected Zscaler (NASDAQ: ZS) to deploy its Zero Trust Exchange™ platform, marking a significant shift from traditional hardware and virtual firewalls to a cloud-native security solution. The implementation includes Zscaler Internet Access™ (ZIA™), Private Access™ (ZPA™), Digital Experience™ (ZDX™), and Data Protection services.
The platform will connect users directly to applications without exposing the corporate network, operating through more than 160 globally distributed data centers. This transition aims to enhance Nokia's security posture, simplify IT operations, and accelerate cloud-first initiatives while moving towards identity-based, location-independent application access.
Zscaler (NASDAQ: ZS) released its ThreatLabz 2024 Encrypted Attacks Report, revealing that over 87% of cyberthreats were delivered through encrypted channels between October 2023 and September 2024, marking a 10% year-over-year increase.
Key findings show that malware accounted for 86% of encrypted attacks with 27.8 billion hits, up 19% year-over-year. Manufacturing was the most targeted industry (42% of attacks), followed by technology and communications. The United States (11B attacks) and India (5.4B attacks) were the top targeted countries.
The report highlights significant increases in web-based attacks, including cryptomining (123%), cross-site scripting (110%), and phishing (34%). Zscaler recommends implementing zero trust architecture with TLS/SSL inspection to effectively detect and block threats while protecting data.
Zscaler (ZS) reported Q1 fiscal 2025 results with revenue growing 26% year-over-year to $628.0 million. Calculated billings increased 13% to $516.7 million, while deferred revenue grew 27% to $1,783.7 million. The company reduced its GAAP net loss to $12.1 million from $33.5 million year-over-year, while non-GAAP net income reached $124.3 million. Free cash flow was $291.9 million, representing 46% of revenue. The company's cloud security platform achieved a milestone of processing over half a trillion daily transactions. For Q2 FY2025, Zscaler expects revenue between $633-635 million and non-GAAP net income per share of $0.68-$0.69.
Zscaler (NASDAQ: ZS), the cloud security leader, has announced its participation in several upcoming investor conferences. The schedule includes presentations at: the UBS Global Technology and AI Conference in Scottsdale (December 4th, 8:35 a.m. PT), the Scotiabank Annual Global Technology Conference in San Francisco (December 10th, 10:30 a.m. PT), the Barclays Annual Global Technology Conference in San Francisco (December 11th), and the Needham Growth Conference (January 9-10th, 2025). Webcasted sessions will be accessible through Zscaler's Investor Relations website.
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