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Zscaler, Inc. (ZS) is a cloud security company that provides a cloud-native platform, the Zscaler Zero Trust Exchange, to enable secure access for users, devices, and applications based on business policies. The company primarily sells subscriptions to its platform, which is designed to replace traditional on-premises security appliances with a zero trust security model. Zscaler also offers professional services, including implementation, network design, and training, though these contribute minimally to its overall business.
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Subscriptions and Support Services - Provides access to the Zscaler Zero Trust Exchange platform, enabling secure connectivity for users, workloads, and IoT/OT devices. Subscriptions are priced on a per-user basis and include ongoing support.
- Zscaler for Users - Secures internet and SaaS access with Zscaler Internet Access (ZIA), internal application access with Zscaler Private Access (ZPA), and optimizes user experience with Zscaler Digital Experience (ZDX). Includes data protection capabilities.
- Zscaler for Workloads - Secures app-to-internet and app-to-app connectivity across multi-cloud and hybrid environments.
- Zscaler for IoT/OT Devices - Extends zero trust security to IoT and OT devices, ensuring secure connectivity and protection.
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Professional Services - Offers mapping, implementation, network design, and training services to assist customers in deploying and optimizing the Zscaler platform. These services contribute an immaterial portion of the company's revenue.
| Name | Position | External Roles | Short Bio | Start Date |
|---|---|---|---|---|
Jay Chaudhry ExecutiveBoard | CEO and Chairman of the Board | None | Co-founded Zscaler in 2007; has led the company to become a leader in cloud security, including its IPO in 2018. Holds an MBA and MS in Electrical and Industrial Engineering from the University of Cincinnati. | September 2007 |
Mike Rich Executive | Chief Revenue Officer | None | Joined Zscaler in 2023; leads global sales strategy. Previously President, Americas at ServiceNow. Received a $550,000 sign-on bonus and $29M equity package upon joining. | November 2023 |
Remo Canessa Executive | Chief Financial Officer | None | Joined Zscaler in 2017; played a key role in the company's IPO and financial strategy, including a $1.15 billion convertible notes issuance. Holds an MBA from Santa Clara University. | February 2017 |
Robert Schlossman Executive | Chief Legal Officer | None | Joined Zscaler in 2016; oversees legal and compliance matters. Holds a JD from UC Berkeley and an MA in English from Stanford University. | February 2016 |
Syam Nair Executive | Chief Technology Officer | None | Joined Zscaler in 2023; oversees product development and research. Previously held leadership roles at Salesforce and Microsoft. Holds an MBA from Indiana University. | June 2023 |
Andrew Brown Board | Board Member | CEO of Sand Hill East LLC; Board Member at Pure Storage | Joined Zscaler's board in 2015; co-authored a book on cybersecurity governance. Holds a B.S. in Chemical Physics from University College London. | October 2015 |
Charles Giancarlo Board | Board Member | CEO of Pure Storage; Board Member at Arista Networks | Joined Zscaler's board in 2016; extensive leadership experience in technology. Holds an MBA from Harvard Business School. | November 2016 |
David Schneider Board | Board Member | General Partner at Coatue Management | Joined Zscaler's board in 2020; former President of ServiceNow. Holds a B.A. in Political Science from UC Irvine. | January 2020 |
Eileen Naughton Board | Board Member | Board Member at Indigo Books and Music, Inc. and Ares Management Corporation | Joined Zscaler's board in 2021; former Chief People Officer at Google. Holds an MBA from the University of Pennsylvania. | September 2021 |
James Beer Board | Board Member | Board Member at Alaska Air Group and DocuSign, Inc. | Joined Zscaler's board in 2024; former CFO of Atlassian, McKesson, and Symantec. Holds an MBA from Stanford University. | May 2024 |
Karen Blasing Board | Board Member | Director at Autodesk, Inc. and GitLab Inc. | Joined Zscaler's board in 2017; former CFO of Guidewire Software and Salesforce. Chairs audit committees at Autodesk and GitLab. Holds an MBA from the University of Washington. | January 2017 |
Scott Darling Board | Board Member | President of Dell Technologies Capital | Joined Zscaler's board in 2016; extensive experience in corporate development and venture capital. Holds an MBA from Stanford University. | November 2016 |
- Despite the strong growth in emerging products, can you provide more clarity on the sustainability of this growth, and what steps are you taking to ensure these emerging products continue to contribute significantly to overall revenue?
- With Remo Canessa retiring after serving as CFO for eight years, how do you plan to manage the transition, and what impact might this have on your financial strategy and investor confidence?
- Given that your net retention rate has decreased to 114% and you mentioned that selling bigger bundles upfront could further reduce this metric, how are you addressing potential concerns about declining net retention rates and the implications for customer growth?
- You mentioned strong competition from legacy firewall vendors who are offering disjointed point products under the pretext of a platform; how do you plan to differentiate your Zero Trust approach to win over customers who might be tempted by integrated solutions from established competitors?
- In light of ongoing scrutiny of large deals and a challenging macroeconomic environment, can you elaborate on the specific measures you are taking to improve sales productivity and execution, and how confident are you in achieving your $5 billion ARR goal?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Business Acquisitions | 2025 | Zscaler made net payments of $834,000 during the six months ended January 31, 2025, representing the cash consideration for the acquisition with limited additional structural details provided. |
Airgap Networks Inc. | 2024 | Completed on April 12, 2024, this deal had a total purchase price of $124.4 million—including deferred merger considerations (valued at $20.3–22.7 million) and $6.2 million in replacement awards—and was aimed at enhancing Zscaler’s Zero Trust SASE leadership by integrating agentless segmentation technology for IoT/OT devices, with key assets allocated to developed technology, customer relationships, and goodwill. |
Avalor Technologies Ltd. | 2024 | Finalized on March 8, 2024 for $256.7 million, this acquisition includes deferred merger consideration (between $46.5–54.8 million) and $14.4 million in replacement awards; it strategically enhances Zscaler’s AI innovations and cloud platform via Avalor’s Data Fabric for Security, with purchase price allocations for developed technology, customer relationships, and substantial goodwill. |
Canonic Security Technologies, Ltd. | 2023 | Acquired on February 20, 2023 for approximately $16.5 million in cash along with deferred merger consideration in the form of 31,840 shares, this transaction allocated $10.6 million to goodwill and $5.1 million to developed technology, thereby expanding Zscaler’s SaaS Security Posture Management capabilities within its Zero Trust Exchange™ platform. |
ShiftRight, Inc. | 2022 | Completed on June 17, 2022 for about $25.6 million in cash with additional deferred merger consideration, the deal’s purchase price was allocated to $18.7 million in goodwill and $7.1 million in developed technology (plus $0.7 million in acquisition costs and a matching deferred tax liability), integrating workflow automation technology to enhance security management and reduce incident resolution times. |
Another Business Acquisition | 2022 | Finalized during the three months ended January 31, 2022 with a total consideration of $2.1 million (comprising $0.4 million in cash and $1.7 million in stock) and deferred merger consideration of $2.6 million; the purchase price was allocated to $1.6 million in developed technology and $0.8 million in goodwill, with a deferred tax liability of $0.4 million, supporting the integration of new technology assets into the platform. |
Recent developments and announcements about ZS.
Earnings
New Earnings (Q2 2025)
·6 days agoView full earnings summary →Zscaler posts double-digit new ACV growth and 40%+ data protection gains for Q2 2025. NRR hits 115% as upsells drive two-thirds of new ACV. Despite macro headwinds, leadership stays bullish on a robust pipeline.