Our Systematic Portfolio picked Zscaler (ZS) this week. I am personally very interested in covering this stock, as I have followed it for a long time.
Zscaler grew revenue 24.9% YoY to $898.2 million in the quarter to 31 July. Organic net new ARR (annual recurring revenue added in the period, excluding acquisitions) re-accelerated to +17% YoY in FQ4. At its first Investor Day in five years, management set a base case of more than $8 billion of ARR by FY31, growth of about 16% to 17% a year.
In today's note, we cover the business, the quarter and the FY27 guide, the cash and the compensation bill, and valuation.
The sections below are only viewable to Multi-model Signals & Research subscribers. You can unlock today with a 1-month free trial.
DISCLAIMER: This newsletter is intended for educational purposes only. Any information or analysis in this note does not constitute an offer to sell or a solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice, nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.