ZS

Someone uh wants your thoughts on ZS >> Zcaler I mean it's probably moving with the cyber security today right 4% I I don't know the cyber sector at all look bouncing off the 50 you got a sector tailwind you have a nice technical so I guess sentiment and technicals in its favor and obviously the

The stock reversed course from its after-hours trading position following the results announcement, but Zscaler was lagging behind peers like CrowdStrike or Palo Alto Networks before these results.

It has not received the same level of attention on Wall Street as others in the field of cybersecurity.

Now, let's move on to a profit engine, Zscaler, which is on your radar today. This was one of the cybersecurity names that made it into its week of reporting. It did not achieve a similar performance to its peers.

Yes, it was a good report. I mean, look at exceeding earnings per share expectations, and exceeding revenue. They have exceeded their revenue growth figures, reaching $898.2 million .

This was a 25% year-on-year increase. Their free cash flow recorded a quarterly margin of approximately 6.8%. Free cash flow amounted to $779 million, with a profit margin of 23%.

Annual recurring revenue, I think, was a bright spot here. It rose by 25% year-on-year to reach approximately $3.77 billion. This is a positive thing. There are 785 clients who now generate more than $1 million in recurring revenue.

This represents an 18% year-on-year increase. There are 4,182 customers who generate more than $100,000 in recurring revenue. This is an increase of 20%. So, these are positive numbers.

Well, Zscaler is familiar to us because we have to go through an authentication process every time we open our laptop. Uh, Wall Street hasn't been very kind to Giscalar this year.

We see that Giscalar is down 36%, while the S&P is up about 19%, but it's even worse when you think about it in terms of the cybersecurity sector.

And then later on, we'll see names like Zscaler reporting, which tie not only the AI buildout, but the security associated with keeping all these networks secure.

And let's talk about Zscaler, too. I mean, their growth outlook was only about 16% to 17%, and I remember when they gave that guidance, there were many flags about whether or not that was conservative guidance or whether there was something concerning in there.