ZS - Embedded Expectations Analysis - 2020 12 09
Zscaler, Inc. (ZS:USA) currently trades at a premium relative to UAFRS-based (Uniform)assets with a 27.2x Uniform P/B. At these levels, the market has bullish expectations for the firm, but management may be concerned about their ability to secure customers, revenue growth, and the potential of Zscaler Private Access
Specifically, management may lack confidence in their ability to resolve performance issues through their Zscaler Digital Experience platform and secure access to 0.5 million applications through Zscaler Private Access (ZPA). Management may also be downplaying concerns about the increase in competition on their network business, and they may have concerns about the new work-from-anywhere economy and the potential of their workload segmentation service. Furthermore, they may lack confidence in their ability to secure customers and sustain revenue growth. Finally, they may be exaggerating the acceleration of their business due to the pandemic and their position in the market
Zscaler is a cloud security company that developed a platform incorporating security functionalities needed to enable users to safely utilize authorized applications and services based on an organization's policies. The company's solution is a purpose-built, multi-tenant, distributed cloud security platform that secures access for users and devices to applications and services, regardless of location. The company delivers its solutions using a software-as-a-service business model and sells subscriptions to customers to access its cloud platform, together with related support services. The company conducts business worldwide, with presence in North America, Europe and Asia.
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