📉 Zscaler: Nice numbers, but investors don't like the outlook! 🔐
Zscaler $ZS, is one of the leaders in the cybersecurity space, and once again delivered a great performance. In the last quarter of the fiscal year, it beat analysts' expectations in profit, revenue and billings. Earnings per share came in at 88 cents, an increase of 37 % compared to last year, and revenue climbed to$592.9 million (+30 %). 🔥 The results thus clearly confirmed Zscaler's strong marketposition .
📉 Although these numbers exceeded expectations, the outlook for the future did not impress investors. For fiscal year 2025, the company forecasts earnings per share of only $2.84, far below the $3.33 estimate the market was expecting. Revenue is expected to reach $2.61 billion, which is slightly below expectations (USD 2.62 billion), but we're still in the very respectable range.
💼 Changes in management and sales organization are also essential. The company announced the arrival of a new Chief Revenue Officer, Chief Marketing Officer and other key executives to bring new strategies to market. However, this transition naturally raises questions about how quickly and effectively the Zscaler able to implement these changes. Year 2025 will be a year of transformation for the company, when it has to deal not only with internal changes but also with strong competition.
This uncertainty about future developments has led to a fall in the shares of more than 17 % despite otherwise strong quarterly results.
🔑In cybersecurity, the company faces Zscaler stiff competition from companies like Palo Alto Networks, CrowdStrike, or Check Point. Still, it has Zscaler a strong platform that includes Zscaler Private Access, which is an innovative solution that replaces the traditional VPN to better support remote working.
📈 The growing cybersecurity market and the continuous increase in customers give room for further growth. Additionally, with platform expansion and new product development, the company could return to stronger numbers in the coming years. 📊🔮
What is your opinion of this company and the industry in general?
It doesn't look bad. I have $CRWD in my portfolio and it's currently very much in the red, but I believe that will change again😃.
I'm staying out of it. I guess this company's not for me. I have a small position in $CRWD in my portfolio, but they're not doing well right now either.
Could be a nice opportunity, though. If it's not ideal now, it's possible to buy at a nice price, wait a while and then collect a nice profit.
In that case, it doesn't make sense for me to invest in this company. $PANW or $CRWD looks more interesting.
Here we go again. Estimates are more important than the actual numbers. The stock is down big time. With the rate cut, possible declines are expected, so I understand the market reacting that way. But it's uncompromising.