Zscaler, Inc. - ZS STOCK NEWS

Zscaler, Inc. announces preliminary unaudited financial results for Q3 2023, exceeding high end of guidance range. Revenue expected to be $415M to $419M, GAAP loss from operations of $59M to $55M, and non-GAAP income from operations of $60M to $64M. Calculated billings expected to increase by 38% to 39% YoY. Full year fiscal 2023 results also expected to exceed prior guidance. Earnings conference call scheduled for June 1, 2023.

Zscaler released its 2023 ThreatLabz Phishing Report, highlighting a 50% increase in global phishing attacks in 2022 compared to 2021. The education sector was the most targeted, with a staggering 576% rise in attacks, followed by finance and government. Major brands such as Microsoft, Binance, and Netflix were frequently impersonated in these phishing campaigns. The report also noted that AI tools, including ChatGPT, have facilitated the surge in phishing activities by lowering technical barriers for cybercriminals. The U.S. remains the top target, accounting for over 65% of phishing attempts. The report emphasizes the need for organizations to adopt a Zero Trust architecture to safeguard against evolving threats.

Zscaler has been recognized as a Leader in the 2023 Gartner Magic Quadrant for Security Service Edge (SSE) for the second consecutive year. This recognition emphasizes the company's commitment to advanced cloud security solutions, crucial for secure digital transformation.

Zscaler's extensive global network, multiple Points of Presence (PoPs), and key accreditations such as FedRAMP High, C5, IRAP, and UK Cyber Essentials contribute significantly to its leadership position. The company also boasts a robust partner ecosystem with powerful API integrations, enhancing its security capabilities.

CEO Jay Chaudhry highlighted the expansion of SSE to cover not only users but also workloads and IoT, promoting a comprehensive security strategy. Additionally, Zscaler received the 2022 Customers’ Choice recognition in the SSE category on Gartner Peer Insights™, marking its strong customer satisfaction.

Zscaler, Inc. (NASDAQ: ZS) has announced enhancements to its Zscaler Posture Control™ platform, integrating data loss prevention (DLP) and ThreatLabz threat intelligence for improved cloud risk management. This advancement enables the only CNAPP solution to provide a precise understanding of cloud risks by correlating sensitive data discovery with security signals. Organizations can now efficiently identify, prioritize, and mitigate risks, helping to secure sensitive data while optimizing resource use. The enhancements are set to roll out by June 2023, providing critical support for teams managing extensive cloud security operations.

Zscaler, Inc. (NASDAQ: ZS) announced the appointment of Karl Soderlund as Senior Vice President, Worldwide Partners, and Alliances on March 10, 2023. Soderlund, with a history at Palo Alto Networks, will enhance Zscaler's partner program and develop a competitive go-to-market strategy. The partner program, crucial to Zscaler's operations, generates 95% of the company's business. Soderlund brings extensive experience from major firms including Aruba Networks and Cisco Systems, aiming to leverage a $72B market opportunity. His proven track record in partner program execution is expected to drive company growth.

Zscaler, Inc. reported robust financial results for Q2 FY2023, achieving revenue growth of 52% year-over-year, totaling $387.6 million. The company also saw calculated billings rise by 34% to $493.8 million and deferred revenue increase by 46% to $1,111.9 million. Notably, GAAP net loss improved to $57.5 million from $100.4 million in the previous year, with non-GAAP net income reaching $57.6 million, up from $19.2 million. The company increased its fiscal year revenue guidance, reflecting strong customer interest in its security platform amidst a challenging economic environment.