Zscaler Inc
ZS
Market Cap$31.11B
Close$
Earnings Call Q2 2025
March 5, 2025 - AI Summary
Strong Financial Performance: Zscaler reported Q2 revenue of $648 million, representing 23% growth year-over-year, and exceeding guidance expectations. The company also achieved an annual recurring revenue (ARR) of over $2.7 billion, with a target to reach $3 billion by the end of the fiscal year.
Improving Metrics: The company’s dollar-based net retention rate improved to 115%, indicating healthy customer retention and expansion. Zscaler added 620 customers with over $1 million in ARR, marking a 25% year-over-year growth in this segment.
Strategic Initiatives: Zscaler is focusing on its "Zero Trust Everywhere" initiative aimed at replacing legacy security architectures (e.g., firewalls and VPNs) with its broader security platform. The company aims to triple its Zero Trust Everywhere enterprise count in 18 months, driven by growing customer demand during hardware refresh cycles.
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$243.43
23.9% upside
Current Fair Value
23.9% upsideUndervalued by 23.9% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $31.11 Billion |
|---|---|
| Enterprise Value | $32.19 Billion |
| Dividend Yield | $0 (0%) |
| Earnings per Share | $-0.39 |
| Beta | 1.12 |
| Outstanding Shares | 153,672,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | -1989.95 |
|---|---|
| PEG | 3108.88 |
| Price to Sales | 14.04 |
| Price to Book Ratio | 19.65 |
| Enterprise Value to Revenue | 14 |
| Enterprise Value to EBIT | -295.02 |
| Enterprise Value to Net Income | -888 |
| Total Debt to Enterprise | 0.09 |
| Debt to Equity | 1.76 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Zscaler Inc
1,480 employees
CEO: Jagtar Chaudhry Zscaler 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, de...