| Sep 11, 2025 | business | Zscaler, founded in 2007, pioneered the cloud-native Zscaler Zero Trust Exchange™ platform, addressing the failure of traditional perimeter security in a world of rapid cloud adoption, mobile workforces, and the transformative impact of AI. Its multi-tenant architecture, distributed globally across 160+ public exchanges, blocks over 225 million threats daily using advanced AI/ML capabilities. The platform offers four core solutions: Zero Trust Everywhere (including Zscaler Internet Access for secure internet/SaaS access, Zscaler Private Access for internal applications, Zscaler Digital Experience for user experience, and securing cloud/branch environments), Data Security Everywhere (AI-powered data classification, Enterprise DLP, Unified SaaS Security, Email Security), Security for AI (protecting public and private AI applications from new risks like prompt injection and data leakage), and Agentic Operations (AI-driven SecOps and ITOps, including Managed Detection and Response via the Red Canary acquisition). Zscaler serves over 9,400 customers, including approximately 40% of the Forbes Global 2000 and 45% of Fortune 500 companies, across diverse industries. Revenue grew from $1.6 billion in fiscal 2023 to $2.6 billion in fiscal 2025, representing 34% and 23% year-over-year growth, respectively. The company, however, incurred net losses of $41.5 million in fiscal 2025 and expects continued losses. Zscaler competes against legacy and point solution vendors, leveraging its integrated cloud platform as a key differentiator. |
|---|
| Sep 11, 2025 | mda | Zscaler, a cloud security platform provider, reported fiscal 2025 revenue of $2,673.1 million, a 23% increase from fiscal 2024, primarily driven by expanded usage and additional subscriptions from existing customers, alongside a 9% growth in its customer base. Despite this growth, the company continues to incur net losses, totaling $41.5 million in fiscal 2025, and expects further losses due to significant investments in sales and marketing to capture market share and in research and development to enhance its cloud platform, particularly in response to the emergence of AI.
The company's growth strategy centers on acquiring new large enterprise customers, with 40% of the Forbes Global 2000 now clients, and leveraging a "land-and-expand" model to increase revenue from existing customers through additional users, advanced capabilities, and cross-selling solutions like ZIA and ZPA. Macroeconomic conditions pose a risk, leading to increased customer scrutiny and elongated sales cycles for larger deals. Zscaler's dollar-based net retention rate was 114% for fiscal 2025, a slight decline from 116% in 2024. The company will transition to Annual Recurring Revenue (ARR) as a primary key metric in fiscal 2026. Liquidity is robust, with $3.57 billion in cash and investments, supported by a recent $1.725 billion issuance of 2028 Convertible Senior Notes, and is considered sufficient for at least the next 12 months. |
|---|
| Sep 12, 2024 | business | Zscaler operates the Zero Trust Exchange platform, a cloud-native security solution that fundamentally shifts networking and security from traditional perimeter-based models, addressing the inadequacy of legacy approaches in a cloud and mobile-first world. This multi-tenant, distributed cloud platform, spanning over 160 global data centers, securely connects users, devices, and applications based on business policies, eliminating the need for on-premises security appliances and VPNs. Its core offerings include Zscaler for Users (Zscaler Internet Access for internet/SaaS, Zscaler Private Access for internal applications, Zscaler Digital Experience for performance, and Data Protection), Zscaler for Workloads (securing cloud/data center apps, Posture Control), and Zscaler for IoT/OT. The platform leverages AI/ML across over 500 billion daily transactions for rapid threat detection and a "cloud security effect." Zscaler targets large enterprises and government agencies, serving approximately 35% of the Forbes Global 2000. The company reported significant revenue growth from $1.09 billion in fiscal 2022 to $2.17 billion in fiscal 2024, but continues to incur net losses, expecting this trend to persist. Growth strategies focus on new customer acquisition, expanding within existing accounts, leveraging channel partners, and continuous R&D, including integrating proprietary LLMs and strategic acquisitions like Avalor for unified vulnerability management. Competition includes legacy appliance vendors and point solution providers, with Zscaler differentiating through its integrated cloud platform. |
|---|
