Latest news with #ZPA
Yahoo
06-03-2025
- Business
- Yahoo
Zscaler Inc (ZS) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Advancements
Revenue: $648 million, up 23% year over year and 3% sequentially. Annual Recurring Revenue (ARR): Over $2.7 billion, a 23% year-over-year growth. Net Retention Rate (NRR): Improved to 115%. Operating Profit Growth: 36% growth, with operating margin improving by 2 percentage points to nearly 22%. Free Cash Flow Margin: Record 22% for Q2. Gross Margin: 80.4%, compared to 80.8% in the year-ago quarter. Operating Expenses: Increased 19% year over year to $380 million. Cash and Investments: Approximately $2.9 billion in cash, cash equivalents, and short-term investments. Guidance for Q3 Revenue: Expected to be in the range of $665 million to $667 million, reflecting 20% to 21% year-over-year growth. Full Year Revenue Guidance: Expected to be in the range of $2.64 billion to $2.654 billion, reflecting approximately 22% year-over-year growth. Full Year Free Cash Flow Margin Guidance: Expected to be approximately 24.5% to 25%. Warning! GuruFocus has detected 3 Warning Sign with ZS. Release Date: March 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Zscaler Inc (NASDAQ:ZS) reported a 23% year-over-year revenue growth, surpassing guidance expectations. The company's annual recurring revenue (ARR) grew by 23% year over year, reaching over $2.7 billion. Operating profit increased by 36%, with operating margin improving by 2 percentage points to nearly 22%. Zscaler Inc (NASDAQ:ZS) achieved a record free cash flow margin of 22% for Q2. The company is seeing strong customer interest in its Zero Trust Branch solution, with 57% of purchases coming from new logo customers. Despite strong performance, there is ongoing scrutiny on large deals, reflecting tighter macroeconomic conditions. Gross margin slightly decreased to 80.4% compared to 80.8% in the previous year. The company noted that increased success in selling bigger bundles could reduce the dollar-based net retention rate in the future. There is a potential impact on sales productivity due to the complexity of closing large deals. Zscaler Inc (NASDAQ:ZS) faces competition from legacy security vendors, which could impact its market positioning. Q: How much of Zscaler's business is coming from CIA and secure web gateway replacements versus broader platform products? A: Jay Chaudhry, CEO, explained that ZIA was the starting point, often replacing blue code and other web gateways. However, the platform now commonly includes ZIA, ZPA, and ZDX. Recently, Zero Trust Branch has become an important starting point, with 57% of customers who bought it being new logos. Q: What proves that the go-to-market changes are making a difference and are durable? A: Ashwin Kesireddy, VP of Investor Relations, noted the strength of the pipeline, double-digit growth in new ACV, and increased C-level engagements in large enterprises as indicators of successful go-to-market changes. Q: Can you discuss the traction with customers opting out of legacy systems for Zero Trust Everywhere? A: Jay Chaudhry highlighted that customers are eager to embrace Zero Trust Branch, which simplifies branch security by eliminating firewalls and routers. A survey showed 96% of CXOs are ready to adopt this approach, indicating strong traction. Q: How is Zscaler addressing the scrutiny on large deals and macroeconomic challenges? A: Remo Canessa, CFO, stated that while macro conditions are tight, the demand for cybersecurity remains strong. Zscaler's ability to offer cost savings alongside Zero Trust cybersecurity is driving pipeline growth, with GSIs playing a crucial role in deal closures. Q: How does AI change Zscaler's competitive positioning and product offerings? A: Jay Chaudhry explained that AI is integrated into existing products and new offerings. Zscaler leverages its vast data to enhance AI-driven solutions like unified vulnerability management and data protection, positioning itself strongly in the evolving AI landscape. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Zawya
09-02-2025
- Business
- Zawya
Zscaler showcases Zero Trust and AI innovations at LEAP 2025
Riyadh, Saudi Arabia – Zscaler, Inc., the leader in cloud security, has announced its participation in LEAP 2025 from February 09-12, 2025, at the Riyadh Exhibition & Convention Center, Malham. Zscaler will be located in Hall 3, Stand C40, under the theme 'Zero Trust Meets AI' to showcase its cutting-edge Zero Trust Exchange™ platform and AI-driven innovations. As a pioneer of Zero Trust, Zscaler is bringing its expertise to LEAP to empower organizations with secure, simplified, and transformative digital solutions. The company's highly integrated Zero Trust Exchange™ platform uses AI to prevent and predict cyber threats, secure data, and provide fast, reliable connectivity for users, workloads, and OT/IoT devices. Committed to the region, Zscaler is also expanding its strategic presence in Saudi Arabia by enhancing its public data center (DC) footprint and broadening the availability of Zscaler Private Access (ZPA) in the Middle East. This development ensures reduced latency, improved performance, and enhanced data sovereignty for customers, adhering to local compliance regulations and data residency requirements. By extending its network to the region, Zscaler is able to provide businesses with a seamless, secure platform to protect their applications, users, and data, regardless of whereabouts. 'Zscaler's Zero Trust Exchange™ platform is designed to deliver comprehensive security for today's dynamic business environments,' said Brian Marvin, SVP at Zscaler EMEA. 'Organizations can now standardize their cybersecurity approach just as they do with HR, ERP, or CRM systems, enabling secure and seamless business transformation.' Users and organizations want a café-like branch experience to empower hybrid work Zscaler will demonstrate the unique capabilities of its Zero Trust Exchange™ platform, which addresses the following critical business needs: Zscaler Business Analytics: Leveraging over 500 trillion daily signals, Zscaler's analytics provide actionable insights to reduce cyber risk, enhance employee digital experiences, and optimize the use of SaaS applications and office spaces. Zscaler Cyberthreat Protection: A holistic approach to protecting users, workloads, and devices using least-privilege access. The platform's proxy architecture enables full TLS/SSL inspection at scale, securing connections based on identity, context, and business policies. Zscaler Data Protection: Comprehensive security for all data types across all channels, powered by AI to prevent sensitive data loss. Zero Trust Networking: Simplifies network architecture, reduces operational complexity, and prevents lateral movement across all locations. 'The rapid pace of digital transformation in the Middle East requires a secure, scalable, and efficient architecture,' said Saeed Agha, VP EMEA Emerging Markets. 'The Zscaler Zero Trust Exchange™ platform is purpose-built for a cloud-first world, eliminating legacy technologies and securely connecting users, devices, and applications. Our vision has always been to create a seamless and secure information exchange.' Event Highlights Visitors to Zscaler's booth at Hall 3, Stand C40, will experience firsthand the benefits of the Zero Trust Exchange™ platform, including its ability to: Securely enable AI-driven insights for better decision-making and faster threat detection. Demonstrate the scalability and resilience of Zscaler's global security cloud, which processes over 500 billion daily transactions and serves more than 8,600 customers worldwide. Showcase its AI-powered threat prevention and policy recommendations for superior cybersecurity outcomes. In addition, Zscaler's thought leaders will participate in key discussions at LEAP, highlighting how AI and Zero Trust are driving secure digital transformation across industries. Join Zscaler at LEAP 2025 Discover how Zscaler's Zero Trust Exchange™ platform can help your organization achieve secure and seamless digital transformation. Visit us in Hall 3, Stand C40, and learn more about our innovative solutions tailored to the Middle East's dynamic business needs. About Zscaler Zscaler (NASDAQ: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 150 data centers globally, the SASE-based Zero Trust Exchange is the world's largest in-line cloud security platform. Zscaler™ and the other trademarks listed at are either (i) registered trademarks or service marks or (ii) trademarks or service marks of Zscaler, Inc. in the United States and/or other countries. Any other trademarks are the properties of their respective owners. Media Contact: press@
Channel Post MEA
05-02-2025
- Business
- Channel Post MEA
Zscaler Offers Integrated Zero Trust Solution For RISE With SAP
Zscaler is now offering customers its Zero Trust Network Access (ZTNA) service, natively integrated within RISE with SAP. Zscaler Private Access (ZPA) for SAP, delivered through the Zscaler Zero Trust Exchange platform, helps enable SAP customers with on-prem ERP workloads to simplify and de-risk their cloud migration, without the complexity and risk associated with traditional VPNs. As per Zscaler's 2024 VPN Risk report, 56% of organizations have been targets of cyberattacks exploiting VPN security vulnerabilities in the last year. These incidents underscore the growing imperative to move away from traditional perimeter-based defenses towards a more robust Zero Trust architecture to enable secure access to an organization's most critical ERP infrastructure. By running ZPA within customers' containerized RISE with SAP cloud environments, Zscaler can deliver native zero trust connectivity to SAP S/4HANA Cloud applications across deployment models, including multi-cloud or hybrid cloud. With this foundation, Zscaler also empowers customers with Zscaler Data Protection for compliance and Digital Experience Monitoring (DEM) with Zscaler Digital Experience (ZDX) for an improved user experience. Businesses that use RISE with SAP can leverage ZPA to benefit from: Secure, Agile Cloud Access : RISE with SAP combines all the components that businesses need to pursue their business transformation strategies securely. With the integration of ZPA within RISE with SAP, customers can eliminate traditional firewalls and VPNs which unlocks cloud agility and improves security and compliance. : RISE with SAP combines all the components that businesses need to pursue their business transformation strategies securely. With the integration of ZPA within RISE with SAP, customers can eliminate traditional firewalls and VPNs which unlocks cloud agility and improves security and compliance. Natively supported Zero Trust protection : By provisioning Zscaler connectors natively, Zero Trust access is enabled within the RISE with SAP environment, without the need for traditional VPNs. This ensures that customers can run their technology operations in a managed, secure cloud infrastructure with built-in security and data protection. : By provisioning Zscaler connectors natively, Zero Trust access is enabled within the RISE with SAP environment, without the need for traditional VPNs. This ensures that customers can run their technology operations in a managed, secure cloud infrastructure with built-in security and data protection. Secure access for workforce and business partners: ZPA delivers seamless client-based and client-less Zero Trust connectivity, ensuring secure, direct access for employees and third parties from anywhere to RISE with SAP applications and resources. Corporate, Customer and GSI Quotes 'Customers have been using the Zscaler Zero Trust Exchange to protect their SAP workloads across a large range of SAP applications for years,' said Punit Minocha, EVP, Business Development & Corporate Strategy at Zscaler. 'Now, we are launching a solution that natively integrates within RISE with SAP to facilitate the secure migration of workloads to a managed service and provides improved user-friendliness by eliminating the burden of traditional firewalls and VPNs. Customers achieve application modernization while also securing remote access to business-critical applications and therefore facilitating the 'working from anywhere' culture that is so important to today's workforce.' 'The integration of Zscaler Private Access with RISE with SAP enables streamlined Zero Trust security across SAP applications, providing secure access for users and partners while supporting compliance and performance, no matter where their workforce, apps or data resides,' said Roland Costea, Chief Information Security Office, SAP Enterprise Cloud Services. 'Using Zscaler Private Access platform, we can confidently enable secure, remote access to SAP resources while maintaining the flexibility and scalability needed', said Tobias Thörmann, Network Security Architect, Volkswagen AG. 'This new integrated solution that Zscaler and SAP have created is an important capability to support our digital transformation with secure cloud services.' Zscaler's ZPA integration with RISE with SAP marks a significant step forward in securing and optimizing enterprise applications in the cloud', said Georgios Billios, Group Service Manager, Siemens AG. 'By seamlessly connecting users to SAP services while maintaining the highest standards of security and performance, this partnership empowers organizations to innovate and scale with confidence in today's digital landscape, which we will evaluate in our own RISE with SAP implementations.' 'This innovative solution will enable organizations like ours to enhance the security and reliability of our SAP applications', said Nataliia Iskra, Head of IT Security Operations, Deutsche Börse. 'By enabling secure, zero-trust access to critical systems without the need for traditional VPNs, Zscaler empowers our teams to work with confidence, no matter where they are. This innovative approach reduces risk, ensures regulatory compliance, and ultimately strengthens the foundation of our IT security strategy.' 'Using Zscaler's ZPA solution to securely access SAP applications is a strategic move for organizations aiming to fortify their enterprise security', said Britta Simms, Managing Director, Accenture. 'Moving beyond traditional perimeter defenses like VPNs allows organizations to ensure that every access request is validated based on identity, context, and risk. This continuous authentication model is essential for protecting SAP applications in the cloud, enabling organizations to embrace digital transformation while maintaining a robust security posture.' 'Modern organizations operate SAP systems across a hybrid landscape and today's distributed workers need access to these systems from different locations', said Sachin Singh, Managing Director, Deloitte & Touche LLP. 'This new solution offered jointly by Zscaler and SAP simplifies migration of SAP applications to the cloud by allowing users to have a consistent, secure experience, no matter where these applications are hosted. With our deep technical cybersecurity knowledge and this new solution from Zscaler and SAP, we can help clients navigate data protection compliance while utilizing digital experience monitoring for optimizing user experience during the migration.' 0 0
