Categories AlphaGraphs, Analysis, Technology

Zscaler could be an ideal cybersecurity stock with long-term prospects

Irrespective of the products or services they offer, tech companies have been, over the past two years, widely adopting cloud technology, thanks to the reliability and convenience it offers. This trend should continue in the coming years, as more industries make use of this technology.  

And this will increase the risks of data hacks, laying fertile grounds for the growth of cybersecurity firms. So if you are a tech investor looking at long-term prospects, cybersecurity is one area that you should definitely consider.

Zscaler (NASDAQ: ZS) has been doing pretty well since its IPO in March last year. The market optimism is evident in the stock movement: ZS stock has more-than-doubled in the trailing 12 months.

zSCALER revneue trend

Last month, the San Jose, California-based firm reported a 61% jump in revenues to $79.1 million. On the other hand, it did report a wider loss, but the company has been pretty transparent on what its short-term priorities are.

CFO Remo Canessa reiterated the company’s focus during the earnings conference call, where he said, “I would emphasize that our plans are not to maximize profitability or generate additional operating leverage in the near term, but to invest aggressively in our business to pursue our significant market opportunity. We plan to continue to invest in our sales organization and marketing programs as well as increased investments in our technology platform and cloud infrastructure.”

Zscaler is a decade-old security-as-a-service company, that focuses on inspection and security of information within cloud infrastructures. It does away with the need for on-site security devices.

READ: Things to know as Crowdstrike makes a scintillating market debut

The company has consistently delivered significant top-line growth (see IG) in the past one year as a public company. Zscaler estimates its addressable market for this calendar year at around $20.3 billion. The company operates around the globe, though half of the revenue comes from the US. EMEA is the second biggest market, accounting for around 40% of total revenue.

Apart from the consistent operational performance, the company ‘s expansion strategy includes adding to its kitty smaller security companies that show promise. Earlier this month, the company announced an agreement with NTT Communications Corporation to deliver cloud-based internet and web security that scales to all users, regardless of location, enabling enterprises to securely embrace the cloud.

The company has also made a silent but significant acquisition of Appsulate, a developer of next-generation browser-based access technology. Similarly, Zscaler last year acquired AI-based stealth security startup TrustPath for an undisclosed amount. These deals are expected to help Zscaler expand its operations and maintain the staggering topline growth at a steady pace.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Micron Earnings Preview: Recovery likely to continue as demand bounces back

Micron Technology Inc. (NASDAQ: MU), a market leader in memory and flash storage chips, emerged from a losing streak in the most recent quarter and reported a profit. The recovery

After mixed Q4, Darden Restaurants stays focused on profitable sales growth

Darden Restaurants, Inc. (NYSE: DRI), which owns popular restaurant brands Olive Garden and LongHorn Steakhouse, has reported stronger-than-expected fourth-quarter results, sending the stock higher soon after the announcement. Contributions from

What to expect when McCormick & Company (MKC) reports Q2 2024 earnings results

Shares of McCormick & Company, Incorporated (NYSE: MKC) stayed green on Friday. The stock has dropped 4% over the past one month. The spices and condiments maker is scheduled to report

Comments

  1. Pingback: MBA degree Cairo
  2. Pingback: Credit Hour System
  3. Pingback: IT Careers
  4. Pingback: fue
  5. Pingback: Pharmacognos
  6. Pingback: Pharmacognos
  7. Pingback: binario led
  8. Pingback: panantukan
  9. Pingback: metanail
  10. Pingback: Fiverr Earn
  11. Pingback: fiverrearn.com
  12. Pingback: fiverrearn.com
  13. Pingback: flatbed broker
  14. Pingback: fiverrearn.com
  15. Pingback: french bulldog
  16. Pingback: fiverrearn.com
  17. Pingback: miniature bulldog
  18. Pingback: future university
  19. Pingback: future university
  20. Pingback: multisbo slot
  21. Pingback: seo
  22. Pingback: bulldogs puppy
  23. Pingback: Fiverr
  24. Pingback: Fiverr.Com
  25. Pingback: FiverrEarn
  26. Pingback: Fiverr.Com
  27. Pingback: lean manufacturing
  28. Pingback: Warranty
  29. Pingback: Piano maintenance
  30. Pingback: FUE
  31. Pingback: FUE
  32. Pingback: FUE
  33. Pingback: FUE
  34. Pingback: FUE
  35. Pingback: Smooth transitions
  36. Pingback: Reliable movers
  37. Pingback: Fiverr.Com
  38. Pingback: Streamer
  39. Pingback: FiverrEarn
  40. Pingback: partners
  41. Pingback: amiclear
  42. Pingback: FiverrEarn
  43. Pingback: FiverrEarn
  44. Pingback: FiverrEarn
  45. Pingback: live sex cams
  46. Pingback: live sex cams
  47. Pingback: FiverrEarn
  48. Pingback: FiverrEarn
  49. Pingback: FiverrEarn
  50. Pingback: FiverrEarn
  51. Pingback: FiverrEarn
  52. Pingback: FiverrEarn
  53. Pingback: FiverrEarn
  54. Pingback: Kuliah Termurah
  55. Pingback: FiverrEarn
  56. Pingback: FiverrEarn
  57. Pingback: FiverrEarn
  58. Pingback: cheap sex cams
  59. Pingback: fullersears.com
  60. Pingback: dog probiotics
  61. Pingback: rare breed-trigger
  62. Pingback: Creditos fiscales
  63. Pingback: laundry online
  64. Pingback: 늑대닷컴
  65. Pingback: superslot
  66. Pingback: allgame
  67. Pingback: 918kiss
  68. Pingback: หวย24
  69. Pingback: pg slot
  70. Pingback: cybersécurité
  71. Pingback: evisa
  72. Pingback: SaaS Lawyer
  73. Pingback: itsMasum.Com
  74. Pingback: website
  75. Pingback: more
  76. Pingback: website
  77. Pingback: chat blink
  78. Pingback: itsmasum.com
  79. Pingback: itsmasum.com
  80. Pingback: itsmasum.com
  81. Pingback: itsmasum.com
  82. Pingback: joker gaming
  83. Pingback: baghdad jobs
  84. Pingback: europe jobs career
Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top