Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Zscaler Inc (ZS): Fighting AI with AI – Will Their Outlook & its 5 Strategic Catalysts Ignite ZS’s $5B ARR Vision as Emerging Products Dominate?
Zscaler delivered a strong Q1 FY25, with revenue of $628M (+26% YoY) and adjusted EPS of $0.77 exceeding expectations, reflecting improved sales execution and robust demand for its Zero Trust Exchange platform and AI-powered security solutions. Emerging products, now contributing 25% of new business, grew ARR at twice the pace of core offerings, driven by AI-enhanced Data Protection, Zero Trust SD-WAN, and ZDX. Key wins included a 7-figure deal with a Global 2000 aerospace firm and an upsell with a Fortune 500 healthcare provider, underscoring Zscaler’s success in capturing high-value opportunities. Federal vertical traction remains strong, with 14 U.S. cabinet-level agencies secured, creating a long-tail upsell opportunity. Operating margin expanded 300 bps to 21%, with a 46% free cash flow margin highlighting operational efficiency. Despite lingering challenges, including tepid 13% billings growth, management’s revised FY25 guidance of $2.633B revenue (+25% YoY) and $2.97 EPS reflects achievable targets, with productivity improvements expected to accelerate H2 growth. Zscaler’s differentiated AI-driven product portfolio, growing upmarket traction, and alignment with Zero Trust adoption support its path to durable growth. Can Zscaler’s focus on AI security, federal expansion, and cross-product traction catalyze its vision of $5B ARR and solidify its position as a cybersecurity market leader?
