Zscaler, Inc. - ZS STOCK NEWS

Zscaler Announces Acquisition of Canonic Security to Enhance SaaS Security

On February 14, 2023, Zscaler (NASDAQ: ZS) revealed plans to acquire Canonic Security, a leader in SaaS application security. This acquisition aims to boost Zscaler's capabilities in combating SaaS supply chain attacks by enhancing security for critical SaaS platforms like Microsoft 365 and Salesforce. The integration is expected to streamline security management and reduce costs by consolidating existing tools. The acquisition aims to address a significant gap in protection against SaaS-native threats, amidst a growing SaaS market projected to reach $176.6 billion in spending.

Zscaler, Inc. (NASDAQ: ZS) is set to release its Q2 fiscal year 2023 earnings on March 2, 2023, after market close. The company will host an investor conference call at 1:30 p.m. PT to discuss the financial results. Zscaler, a leader in cloud security, enables businesses to securely connect users, devices, and applications through its Zero Trust Exchange, the world's largest in-line cloud security platform. This conference call is crucial for investors to gain insights into the company's performance and future outlook.

Zscaler, Inc. (NASDAQ: ZS) announces the launch of Zscaler Resilience, enhancing its cloud security platform to ensure business continuity during unforeseen events. The new capabilities include Disaster Recovery, Dynamic Performance-based Selection, and Customer-controlled Data Center Exclusion, allowing organizations to maintain access to critical applications despite disruptions. This initiative is vital for enterprises that rely on uninterrupted operations, particularly in sectors like renewable energy. With Zscaler's long-standing reputation for reliability, this advancement emphasizes their commitment to customer support and resilience in cloud operations.

Zscaler (NASDAQ: ZS) has joined the Joint Cyber Defense Collaborative (JCDC) to enhance cyber resiliency in the U.S. Established by CISA, JCDC focuses on developing joint cyber defense strategies. Zscaler will utilize its ThreatLabz team to analyze data from over 270 billion transactions daily, helping to prevent cyberattacks. The collaboration aims to improve the cybersecurity posture of the U.S. and its global partners, further underscoring Zscaler's commitment to security innovation and its extensive experience in protecting sensitive data.

Zscaler releases its 2022 State of Encrypted Attacks Report, revealing a 20% increase in security threats, with over 85% of attacks using encrypted channels. Key findings include that malware is the leading threat, contributing to 90% of encrypted tactics. Targeted industries include manufacturing and education, experiencing 239% and 134% attack increases, respectively. Conversely, retail and government attacks fell by 63% and 40%. With Zscaler blocking 24 billion threats, the report emphasizes the need for zero trust architecture.

Zscaler has been selected by the Women’s Tennis Association (WTA) to implement its Zero Trust Exchange as part of the organization's transition from traditional security models to a cloud-first architecture. This collaboration aims to enhance security for the WTA’s mobile workforce, comprised of over 1600 players. The implementation promises faster and more secure access to applications, reducing the attack surface and operational costs. Zscaler's services include Internet Access, Private Access, and Digital Experience, all essential for the WTA’s digital transformation journey.

Zscaler highlights a global shift towards zero trust architecture among organizations migrating to the cloud, with over 90% implementing or planning to implement such systems. Despite this, only 22% of IT leaders are fully confident in their cloud leverage, revealing significant potential for improvement. The 2023 Zero Trust Transformation report indicates that 68% of leaders see traditional security measures as inadequate, further cementing Zero Trust Network Access (ZTNA) as a priority for secure remote access. A significant 52% believe zero trust improves user experience in hybrid work styles.

Zscaler reported a 54% year-over-year revenue growth to $355.5 million in Q1 FY2023, with calculated billings at $340.1 million, up 37%. Deferred revenue increased by 55% to $1,005.7 million. The company's GAAP net loss improved to $68.2 million from $90.8 million year-over-year. Non-GAAP net income hit $44.0 million, marking significant growth from $21.0 million in the prior year. Zscaler also announced its achievement of FedRAMP High authorization and the acquisition of ShiftRight, enhancing its security offerings.

Zscaler, Inc. (NASDAQ: ZS) has achieved FedRAMP Moderate authorization for its Zscaler Private Access (ZPA)™ service, securing its position as the only cloud security provider with complete FedRAMP authorization across all core solutions. This certification allows U.S. government agencies and contractors to protect sensitive data against cyber threats using Zscaler's Zero Trust Exchange platform. The platform processes over 250 billion transactions daily, stopping more than seven billion threats. Zscaler aims to enhance federal cyber defenses further, leveraging its extensive operational experience.