Stockideas

Zscaler, Inc
(NASDAQ:ZS)
Zscaler, Inc

Zscaler, Inc. operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, internet of things, and device secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to internally managed applications, either host...
Founded: 2008
IPO date: 2018-03-16
IPO price: $27.5
Full Time Employees: 2,020
CEO: Jay Chaudhry  (Oct 2007~)
Sector: Technology
Industry: Software-Infrastructure
Stock price: $129.02 (-10.71%)
Zscaler Q4 Earnings: Another Blowout Quarter For This Cybersecurity Leader
By: jocelyn lazy guy   💬 13   
   on Sep 11, 2022

Zscaler is a leading cloud-native cybersecurity provider.

https://seekingalpha.com/article/4540031-zscaler-q4-earnings-blowout-cybersecurity-leader?mailingid=29008860&messageid=must_reads&serial=29008860.1230473&source=email_must_reads&utm_campaign=Must+Read+September+10%2C+2022

$ZS


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Annual Changes to the Nasdaq-100 Index®
By: ssmlee04 Community Lead :))   💬 98   
   on Dec 11, 2021

https://www.globenewswire.com/news-release/2021/12/11/2350269/6948/en/Annual-Changes-to-the-Nasdaq-100-Index.html

The following six companies will be added to the Index: Airbnb, Inc. (Nasdaq: ABNB), Fortinet, Inc. (Nasdaq: FTNT), Palo Alto Networks, Inc. (Nasdaq: PANW), Lucid Group, Inc. (Nasdaq: LCID), Zscaler, Inc. (Nasdaq: ZS), Datadog, Inc. (Nasdaq: DDOG).

This should lift the stock prices of those companies in the short term. $ABNB, $FTFT, $PANW, $LCID, $ZS, $DDOG


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Zscaler has yet another blowout quarter
By: ssmlee04 Community Lead :))   💬 98   
   on Dec 01, 2021

Their revenue growth is 62% yoy now. And if you look into qoq that's 17% qoq and almost 87% yoy (1.17^4). This is pretty impressive revenue growth considering they're already a company at this scale.

Their gross margin continues to be in the 80% level. This is the fun thing about SaaS companies once you setup everything it seems that you can just run itself and every dollar revenue you make is literally just profits in the long run.

https://i.imgur.com/Z8j8wCX.png

Highlights:

  • Revenue grows 62% year-over-year to $230.5 million
  • Calculated billings grows 71% year-over-year to $247.7 million
  • Deferred revenue grows 74% year-over-year to $647.8 million
  • GAAP net loss of $90.8 million compared to GAAP net loss of $55.0 million on a year-over-year basis
  • Non-GAAP net income of $21.0 million compared to non-GAAP net income of $20.0 million on a year-over-year basis

Financial Outlook

For the second quarter of fiscal 2022, we expect:

  • Total revenue of $240 million to $242 million
  • Non-GAAP income from operations of $20 million to $21 million
  • Non-GAAP net income per share of approximately $0.11, assuming approximately 150 million common shares outstanding For the full year fiscal 2022, we expect:
  • Total revenue of $1.00 billion to $1.01 billion
  • Calculated billings of $1.300 billion to $1.305 billion
  • Non-GAAP income from operations of $90 million to $93 million
  • Non-GAAP net income per share of $0.50 to $0.52, assuming approximately 150 million to 151 million common shares outstanding

Now we know they're probably onto something in cybersecurity. Shares are up 5% in after-hour trading. For a company priced at p/s ratio of 76.03 this is definitely not something cheap but considering they're looking at yoy 80% ish growth maybe there's something here short term.

$ZS


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interesting earnings next week
By: ssmlee04 Community Lead :))   💬 98   
   on Nov 27, 2021

$crwd. $Snow. $Okta. $Asan. $Docu. $Domo. $Estc. $ZS. Next week is gonna be interesting, lots of innovative high growth companies announcing their earnings next week.

https://i.imgur.com/t74lqCp.jpg


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2020 SaaS review
By: ssmlee04 Community Lead :))   💬 98   
   on Jan 03, 2021

2020 is an interesting year for SaaS companies. Some of them went public and gained huge success in the stock market. Some of them continued their rally from 2016-2019 and have another great year. Some of them have greater success than the others because of their business models in the work-from-home environment. And there's a common thing for those SaaS companies, that is: those companies probably developed something people want.

The following is a list of the top 15 SaaS performers in our database in the last 250 days as of December 31, 2020. https://i.imgur.com/xL1w2F2.jpg

Some of the companies here are getting a lot of attention this year. Terminologies like Zoom Fatigue even appeared in the second quarter. It seems everyone was talking about Zoom at some point. And that's reasonable because Zoom is the clear winner in this video conferencing space. They keep your company operational by providing you a smooth video call user experience for your employees and your clients. There are literally companies built on top of Zoom calls that provide you remote journey experiences, and they do great because of Zoom and Covid.

https://i.imgur.com/KWx3Ea2.png

Cybersecurity is also something to worry about for companies in 2020. Intuitively, when companies are working remotely it would be harder for companies to safeguard their infrastructure. That's when companies like CrowdStrike or Zscalar or Okta come into play. Okta help companies manage their employees' access identities. Zscalar and CrowdStrike protect your web infrastructure using technologies to derive insights from your data and protect your infrastructure in real-time or near real-time.

Also when a lot of people are working remotely you'd expect Internet usage to go up. Cloudflare is a CDN company that help websites serve their requests fast. Fastly is also doing similar things in the video CDN space and helps companies like TikTok serve their videos. And as more people spend more time on their mobile devices those companies also do well. And to support those web requests you need companies like Twilio to send you SMS messages or phone calls, without Twilio you might not even able to login to your apps.

Also when people are staying at home people have more time to get creative. So maybe people start selling stuff on Shopify or Etsy or Pinterest or create websites on Wix. And at the same time, you have marketing companies like Facebook or TradeDesk or Digital Turbine to help you advertise your stuff on mobile devices. The success stories for those SaaS companies are inter-connected.

There are many other interesting SaaS companies that are not mentioned above. They are not in the top 15 maybe because they're not directly related to the stay-at-home trend, but that doesn't mean they're less interesting. As a software engineer, I have to use application monitoring services, database services, image compression and processing services, mailing services... and many others. This is what makes a modern software company functional. And as long as your company is growing you would continue to add and look for the best services for your company. And when more companies are becoming software companies I can imagine those SaaS companies to have a great future ahead.

A few things in common here for the companies on the list:

  • They grow REALLY fast. A lot of the companies on the list are growing 40-80% a year.
  • They all have really high gross profit margins.
  • They're traded at a very high valuation. A lot of them have a p/s ratio of 40-60.
  • The majority of them are losing money.
  • They don't pay dividends.

A possible explanation is that there are no clear winners in the space they're operating in, so they're doing whatever it takes to make sure they win in the long run. And of course that means they cannot afford to pay dividends. Also they're all traded at astronomical levels of valuations maybe because they have high profit margins, and the future for those companies are expected to be good.

Take DocuSign for example. They're one of the pioneers in e-signature. But e-signature is some sort of niche market. You may come up with another e-signature solution with a small team but by the time you have the solution in place you might already be spending millions achieving zero revenue while DocuSign might grow revenue another 40%. In the end there's just not enough market share for you to survive. So it would not be a good idea to copy DocuSign business model, this makes DocuSign (and all the SaaS companies) unique in a way.

If you look back at Amazon anytime in the past 20 years you'll see it's always traded at high multiples. It is still traded at high multiples today but would anyone complain that Amazon is too expensive? Probably not. Because now we know Amazon is dominating in any spaces they're operating in, we just couldn't see it 20 years ago. So maybe there's a correction between winning and being expensive and that's why all the cloud stocks are expensive because there's a chance all of them are dominating in their space in the next 5-10 years.

But, of course, being expensive does not mean the company would be successful eventually. But if you want to look for something good in the next 5-10 years there's a chance it's on the list but you just don't know it yet.

$ZS $DBX $ZUO $AYX $DOCU $SMAR $DOMO $SVMK $AVLR $TTD $PCOM $NOW $WDAY $PD $WORK $ZEN $TEAM $VEEV $CLDR $SHOP $FSLY $TWLO $ADBE $AAXN $CRM $OKTA $GOOG $DT $ZM $SPLK $WIX $COUP $MDLA $LPSN $APPN $EPAY $AKAM $APPS $FIVN $BL $PANW $PFPT $CRWD $DDOG $NET $HUBS $NEWR $APPF $RNG $ESTC $BILL $GDDY $DCT $ECOM $PLAN $SNOW $SUMO $FROG $ASAN $JAMF $ADSK


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SaaS crashed in such a short period of time
By: ssmlee04 Community Lead :))   💬 98   
   on Oct 23, 2019

https://boards.fool.com/for-those-of-you-new-to-this-kind-of-situation-34291318.aspx

This is a great thread that I was following earlier, the sentiment of this thread has been very optimistic starting this year and peaked around the time all SaaS like $CRWD, $OKTA, $ZS, $AYX and many others peaked, then the crash happened. I guess a lot of people probably get caught off guard when SaaS retraced 30-60% from the peak in such a short period. The crash does affect me but not in a lethal way. I had 20-30% in SaaS and other high growth pharmas and has already stop-lossed many of my SaaS positions a lot earlier. So it's not ideal but it won't kill me.

https://i.imgur.com/C2UNjeq.png

Maybe it's a good thing. A lot of SaaS has been up 1000% in less than 3 years. This is not normal. A correction is bound to happen and I think we're in one. What's scarier is Dow Jones and Nasdaq is still at all-time high and I can't imagine what would happen to those SaaS if those indexes decide to revert tomorrow.


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ZS
By: markduprejr lazy guy   💬 6   
   on Sep 11, 2019

Caught the dip today. Nice company great. Great growth just turning profitable. 120words120words120words120words120words120words120words120words120words120words120words120words120words120words120words120words120words120words120words120words120words120words120words120words


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looking to enter a position in this stock
By: hughgrant lazy guy   💬 13   
   on May 31, 2019

both earnings and revenue beat the estimates in the earnings call. it's one of the leaders in the cloud information security service provider. I hope it drops more so that I can load up a bit of it.


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