Zscaler, Inc.
Pitch Summary: Zscaler, Inc. (ZS) is demonstrating strong performance with its go-to-market (GTM) model, securing larger platform deals and maintaining a revenue growth rate above 20%. The company is successfully winning high-value deployments, indicating a deep integration into customer networks. Zscaler’s new GTM strategy, which involves hiring domain experts, is proving effective in selling the […]
Stock Comp in SoftwareZscaler, Inc. – ZS
Pitch Summary: Zscaler trades at approximately 15x sales with 38% growth and 15% headline EBITDA margins. However, the company has 39% of its sales in stock-based compensation and 8% on capital expenditures, resulting in a modified Rule of 40 score of only 7%. This indicates that the company’s valuation may be overstated given its true […]
Zscaler, Inc.
Pitch Summary: Zscaler is a key player in the cybersecurity sector, showing strong revenue growth and solid profit margins. However, its current valuation appears to have priced in much of the optimism surrounding its potential benefits from generative AI and agent-to-agent security products. The stock is not as expensive as some peers, but caution is […]
