Loading...

Zscaler

Nasdaq:ZS
Snowflake Description

Flawless balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZS
Nasdaq
$6B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Zscaler, Inc. operates as a cloud security company worldwide. The last earnings update was 78 days ago. More info.


Add to Portfolio Compare Print
  • Zscaler has significant price volatility in the past 3 months.
ZS Share Price and Events
7 Day Returns
-0.9%
NasdaqGS:ZS
0.6%
US Software
1.4%
US Market
1 Year Returns
-
NasdaqGS:ZS
22.7%
US Software
2.3%
US Market
ZS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zscaler (ZS) -0.9% 10.3% 46.7% - - -
US Software 0.6% 6.4% 13.5% 22.7% 110.6% 122.2%
US Market 1.4% 5.6% 5.7% 2.3% 44.2% 40.9%
1 Year Return vs Industry and Market
  • No trading data on ZS.
  • No trading data on ZS.
Price Volatility
Industry
5yr Volatility vs Market

ZS Value

 Is Zscaler undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zscaler to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zscaler.

NasdaqGS:ZS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ZS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Software Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.117 (1 + (1- 21%) (0%))
1.117
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.117 * 7.27%)
10.85%

Discounted Cash Flow Calculation for NasdaqGS:ZS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Zscaler is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ZS DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 44.63 31.18 92.20 107.87 125.13
Source Analyst x4 Analyst x7 Analyst x2 Est @ 17%, capped from 35.29% Est @ 16%, capped from 35.29%
Present Value
Discounted (@ 10.85%)
40.26 25.38 67.69 71.45 74.77
Present value of next 5 years cash flows $279.56
NasdaqGS:ZS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $125.13 × (1 + 2.73%) ÷ (10.85% – 2.73%)
$1,583.63
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $1,583.63 ÷ (1 + 10.85%)5
$946.30
NasdaqGS:ZS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $279.56 + $946.30
$1,225.86
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,225.86 / 122.25
$10.03
NasdaqGS:ZS Discount to Share Price
Calculation Result
Value per share (USD) From above. $10.03
Current discount Discount to share price of $49.67
= -1 x ($49.67 - $10.03) / $10.03
-395.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Zscaler is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zscaler's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zscaler's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ZS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-10-31) in USD $-0.39
NasdaqGS:ZS Share Price ** NasdaqGS (2019-02-21) in USD $49.67
United States of America Software Industry PE Ratio Median Figure of 78 Publicly-Listed Software Companies 48.75x
United States of America Market PE Ratio Median Figure of 3,045 Publicly-Listed Companies 17.39x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zscaler.

NasdaqGS:ZS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ZS Share Price ÷ EPS (both in USD)

= 49.67 ÷ -0.39

-127.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zscaler is loss making, we can't compare its value to the US Software industry average.
  • Zscaler is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Zscaler's expected growth come at a high price?
Raw Data
NasdaqGS:ZS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -127.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
10.8%per year
United States of America Software Industry PEG Ratio Median Figure of 63 Publicly-Listed Software Companies 3.41x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Zscaler, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Zscaler's assets?
Raw Data
NasdaqGS:ZS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-10-31) in USD $2.07
NasdaqGS:ZS Share Price * NasdaqGS (2019-02-21) in USD $49.67
United States of America Software Industry PB Ratio Median Figure of 218 Publicly-Listed Software Companies 5.75x
United States of America Market PB Ratio Median Figure of 5,129 Publicly-Listed Companies 1.87x
NasdaqGS:ZS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ZS Share Price ÷ Book Value per Share (both in USD)

= 49.67 ÷ 2.07

24.05x

* Primary Listing of Zscaler.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zscaler is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess Zscaler's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Zscaler has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ZS Future Performance

 How is Zscaler expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zscaler expected to grow at an attractive rate?
  • Unable to compare Zscaler's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Zscaler's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Zscaler's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ZS Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ZS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 10.8%
NasdaqGS:ZS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 27.9%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 18.8%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ZS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ZS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-07-31 457 121 -30 7
2020-07-31 357 65 -33 15
2019-07-31 272 53 -39 14
NasdaqGS:ZS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-10-31 214 33 -34
2018-07-31 190 17 -40
2018-04-30 171 -1 -46
2018-01-31 154 -9 -46
2017-10-31 139 -8 -49
2017-07-31 126 -6 -45
2017-04-30 113 -8 -38
2016-07-31 80 -12 -36

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zscaler is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Zscaler's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ZS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Zscaler Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ZS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-07-31 -0.05 -0.05 -0.05 1.00
2020-07-31 -0.18 -0.12 -0.24 4.00
2019-07-31 -0.27 -0.21 -0.40 4.00
NasdaqGS:ZS Past Financials Data
Date (Data in USD Millions) EPS *
2018-10-31 -0.39
2018-07-31 -0.63
2018-04-30 -1.11
2018-01-31 -1.52
2017-10-31 -1.64
2017-07-31 -1.54
2017-04-30 -1.32
2016-07-31 -1.36

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Zscaler is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Zscaler's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zscaler has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ZS Past Performance

  How has Zscaler performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zscaler's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zscaler does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Zscaler's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Zscaler's 1-year growth to the US Software industry average as it is not currently profitable.
Earnings and Revenue History
Zscaler's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zscaler Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ZS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-10-31 213.61 -33.64 152.10 43.76
2018-07-31 190.17 -39.98 139.51 39.38
2018-04-30 170.54 -46.19 130.10 36.51
2018-01-31 154.35 -46.11 118.82 34.38
2017-10-31 138.80 -48.98 106.49 31.83
2017-07-31 125.72 -45.03 93.93 29.16
2017-04-30 112.74 -37.74 83.71 26.09
2016-07-31 80.33 -36.09 66.10 20.94
2015-07-31 53.71 -12.98 36.66 15.03

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Zscaler has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Zscaler has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Zscaler improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Zscaler's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zscaler has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ZS Health

 How is Zscaler's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Zscaler's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zscaler is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zscaler's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Zscaler's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Zscaler has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zscaler Company Filings, last reported 3 months ago.

NasdaqGS:ZS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-10-31 252.18 0.00 314.04
2018-07-31 240.24 0.00 298.54
2018-04-30 243.19 0.00 287.44
2018-01-31 39.03 0.00 71.57
2017-10-31 42.10 0.00 75.76
2017-07-31 49.84 0.00 87.98
2017-04-30 59.43 0.00 87.37
2016-07-31 66.67 0.00 92.84
2015-07-31 62.47 0.00 83.84
  • Zscaler has no debt.
  • Zscaler has not taken on any debt in the past 5 years.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Zscaler has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Zscaler has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -77.5% per year.
X
Financial health checks
We assess Zscaler's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zscaler has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ZS Dividends

 What is Zscaler's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Zscaler dividends. Estimated to be 0% next year.
If you bought $2,000 of Zscaler shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Zscaler's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Zscaler's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ZS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2001 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ZS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-07-31 0.00 2.00
2020-07-31 0.00 3.00
2019-07-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Zscaler has not reported any payouts.
  • Unable to verify if Zscaler's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Zscaler's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Zscaler has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Zscaler's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Zscaler's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zscaler afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zscaler has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ZS Management

 What is the CEO of Zscaler's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jay Chaudhry
COMPENSATION $297,309
AGE 59
TENURE AS CEO 11.4 years
CEO Bio

Mr. Jagtar S. Chaudhry, also known as Jay, is the Co-Founder of Zscaler, Inc. and has been its Chief Executive Officer, President and Chairman since September 2007. Mr. Chaudhry served as the Chief Strategy Officer of Secure Computing Corp. from August 31, 2006 to July 2007. Mr. Chaudhry is a seasoned entrepreneur and experienced technology executive with a track record of success. He has proven himself to be an innovator and trendsetter by spearheading numerous initiatives to improve the overall posture of the security industry. He founded CipherTrust, Inc. in March 2000 and served as its Chairman and Chief Executive Officer. He has unique combination of marketing, sales and technical skills as well as a wealth of experience in the software industry. Before starting Air2Web, Inc., he founded SecureIT in 1997 and served as its President and Chief Executive Officer. After selling SecureIT to VeriSign, Mr. Chaudhry served as Executive Vice President and General Manager of Security Services division of VeriSign. He also served as Senior Vice President of Marketing and Business Development of IQ Software., where he joined in 1995. He served as Vice President of sales and marketing for Software Products Division at Unisys. Prior to that, he held various sales and marketing management positions at NCR and IBM. In 2000, he founded CoreHarbor, the first ASP for e-procurement solutions, which was acquired by USi/AT&T. A seasoned technology and business executive, he has held numerous positions at leading technology providers. His impeccable reputation includes more than 25 years of sales, marketing and engineering experience from leading companies and the successful launch of several technology companies. Over the years, he has been a Founder, primary investor and/or chairman and Chief Executive Officer of several successful start-up technology companies. He is considered an industry thought leader in cyber-security and has been honored for his entrepreneurial leadership and management success by numerous organizations. He began his career in software development and systems integration. He co-founded AirDefense, Inc. in 2001 and served as its Executive Chairman. Mr. Chaudhry co-founded Air2Web, Inc. in 1999 and served as its Chairman. He served as the Chairman of AirDefense, Inc. He served as Vice Chairman of Secure Computing Corp. from August 31, 2006 to September 14, 2007. He served as a Director of AirDefense, Inc. He served as a Director of Air2Web, Inc. and Technology Association of Georgia. Mr. Chaudhry served as a Director of CipherTrust, Inc. He served as a Director of Secure Computing Corp. from August 31, 2006 to September 14, 2007. He is founding president of TiE Atlanta and is on the Board of Trustees of global TiE. He was honored as Entrepreneur of the Year in the Southeast and as a finalist for the US national by Ernst & Young. He was named an Innovator & Influencer by Information Week magazine, and Who's Who by the Atlanta Business Chronicle. He was honored as Entrepreneur of the Year awards from Catalyst magazine, and is a winner of Atlanta's Top 50 Names to Know many times. Mr. Chaudhry holds an MBA with a Marketing specialization, a Master of Science degree in Computer Engineering and Industrial Engineering, a Master of Science degree in Engineering Management from the University of Cincinnati, and a Bachelor of Technology in Electronics Engineering from Indian Institute of Technology (Banaras Hindu University) Varanasi. Mr. Chaudhry attended Executive Management Programs at Harvard Business School, Wharton Business School and IBM Corp.

CEO Compensation
  • Insufficient data for Jay to compare compensation growth.
  • Jay's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Zscaler management team in years:

5.6
Average Tenure
55
Average Age
  • The average tenure for the Zscaler management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jay Chaudhry

TITLE
Co-Founder
COMPENSATION
$297K
AGE
59
TENURE
11.4 yrs

Remo Canessa

TITLE
Chief Financial Officer
COMPENSATION
$469K
AGE
61
TENURE
2 yrs

Amit Sinha

TITLE
CTO, Executive VP of Engineering & Cloud Operations & Director
COMPENSATION
$431K
AGE
42
TENURE
8.2 yrs

K. Kailash

TITLE
Founder & Chief Architect
TENURE
12.1 yrs

Patrick Foxhoven

TITLE
Chief Information Officer & VP of Emerging Technologies

Bill, William Choi

TITLE
Vice President of Investor Relation

Robert Schlossman

TITLE
Chief Legal Officer & Secretary
AGE
50
TENURE
3 yrs

Punit Minocha

TITLE
Senior Vice President of Business & Corporate Development

Micheline Nijmeh

TITLE
Chief Marketing Officer
TENURE
0.3 yrs

Greg Pappas

TITLE
Chief People Officer
AGE
55
Board of Directors Tenure

Average tenure and age of the Zscaler board of directors in years:

2.3
Average Tenure
59
Average Age
  • The average tenure for the Zscaler board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jay Chaudhry

TITLE
Co-Founder
COMPENSATION
$297K
AGE
59
TENURE
11.4 yrs

Amit Sinha

TITLE
CTO, Executive VP of Engineering & Cloud Operations & Director
COMPENSATION
$431K
AGE
42
TENURE
1.8 yrs

Charlie Giancarlo

TITLE
Director
COMPENSATION
$11K
AGE
60
TENURE
2.3 yrs

Karen Blasing

TITLE
Independent Director
COMPENSATION
$14K
AGE
62
TENURE
2.1 yrs

Andy Brown

TITLE
Director
COMPENSATION
$13K
AGE
54
TENURE
3.3 yrs

Nehal Raj

TITLE
Director
AGE
39
TENURE
3.6 yrs

Scott Darling

TITLE
Director
COMPENSATION
$9K
AGE
62
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • Zscaler insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
01. Feb 19 Sell Amit Sinha Individual 31. Jan 19 31. Jan 19 -4,807 $48.45 $-225,358
19. Dec 18 Sell Manoj Apte Individual 17. Dec 18 17. Dec 18 -65,544 $41.83 $-2,561,128
09. Nov 18 Sell Amit Sinha Individual 08. Nov 18 08. Nov 18 -256 $42.27 $-10,821
24. Sep 18 Sell Amit Sinha Individual 20. Sep 18 20. Sep 18 -2,584 $39.25 $-100,451
21. Mar 18 Buy Charles Giancarlo Individual 20. Mar 18 20. Mar 18 125,000 $16.00 $2,000,000
21. Mar 18 Buy Lane Bess Individual 20. Mar 18 20. Mar 18 109,375 $16.00 $1,750,000
21. Mar 18 Buy Scott Darling Individual 20. Mar 18 20. Mar 18 62,500 $16.00 $1,000,000
21. Mar 18 Buy Karen Blasing Individual 20. Mar 18 20. Mar 18 15,625 $16.00 $250,000
X
Management checks
We assess Zscaler's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zscaler has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ZS News

Simply Wall St News

Should Investors Be Happy About Zscaler, Inc.’s (NASDAQ:ZS) Cash Levels?

(NASDAQ:ZS), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … Free cash flow (FCF) is the amount of cash Zscaler has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

What Kind Of Shareholder Owns Most Zscaler, Inc. (NASDAQ:ZS) Stock?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Zscaler has a market capitalization of US$4.9b, so it's too big to fly under the radar. … We'd expect to see both institutions and retail investors owning a portion of the company.

Simply Wall St -

Is Zscaler Inc (NASDAQ:ZS) A Financially Strong Company?

Stocks with market capitalization between $2B and $10B, such as Zscaler Inc (NASDAQ:ZS) with a size of US$4.8b, do not attract as much attention from the investing community as do the small-caps and large-caps. … ZS’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.

Simply Wall St -

How Do Analysts See Zscaler Inc (NASDAQ:ZS) Performing Over The Next Few Years?

Zscaler Inc's (NASDAQ:ZS) announced its latest earnings update in July 2018, which … that losses became smaller relative to the prrior year's level

Simply Wall St -

Does Zscaler Inc's (NASDAQ:ZS) Past Performance Indicate A Weaker Future?

Investors with a long-term horizong may find it valuable to assess Zscaler Inc's (NASDAQ:ZS) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … View our latest analysis for Zscaler Did ZS perform worse than its track record and industry? … For Zscaler, its latest earnings (trailing twelve month) is -US$48.69M, which, in comparison to the previous year's level, has become more negative.

Simply Wall St -

All You Need To Know About Zscaler Inc's (NASDAQ:ZS) Financial Health

Check out our latest analysis for Zscaler Can ZS service its debt comfortably? … Given zero long-term debt on its balance sheet, Zscaler has no solvency issues, which is used to describe the company’s ability to meet its long-term obligations. … With current liabilities at US$120.46M, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.19x.

Simply Wall St -

ZS Company Info

Map
Description

Zscaler, Inc. operates as a cloud security company worldwide. The company’s flagship services include Zscaler Internet Access solution that connect users to externally managed applications, including software-as-a-service applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to internally managed applications, either hosted internally in data centers, and private or public clouds. It serves customers in various industries, such as airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.

Details
Name: Zscaler, Inc.
ZS
Exchange: NasdaqGS
Founded: 2007
$6,072,163,261
122,250,116
Website: http://www.zscaler.com
Address: Zscaler, Inc.
110 Rose Orchard Way,
San Jose,
California, 95134,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ZS Common Stock Nasdaq Global Select US USD 16. Mar 2018
LSE 0XVU Common Stock London Stock Exchange GB USD 16. Mar 2018
Number of employees
Current staff
Staff numbers
1,050
Zscaler employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/22 01:18
End of day share price update: 2019/02/21 00:00
Last estimates confirmation: 2019/01/23
Last earnings filing: 2018/12/06
Last earnings reported: 2018/10/31
Last annual earnings reported: 2018/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.