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Highlights
- Zscaler, Inc. (NASDAQ:ZS) is a cloud security company with a market capitalization of US$22.29 billion.
- Zscaler is partnering with technology company Siemens to offer an all-in-one solution to boost secure digitalization.
- Zscaler’s revenue increased by 63% YoY to US$286.8 million in Q3, fiscal 2022.
The Zscaler, Inc. (NASDAQ:ZS) stock rose 10.95% to US$157.6901 at 12:20 pm ET on Friday after announcing a partnership with technology company Siemens and third-quarter results the day before.
Zscaler is a cloud security solutions provider, while Siemens focuses on automation and digitalization. Both the companies joined hands to offer an all-in-one solution for “Operational Technology (OT)” environments to accelerate secure digitalization.
Following the partnership, the Zero Trust OT security platform powered by Zscale will be available for customers globally via Siemens. Siemens customers will be able to get Zscaler Remote Access for OT alongside Siemens’ processing platform.
With the new security solution, customers could securely manage and control quality and analyze production OT infrastructure from any location. As technologies develop, the work environments are becoming hybrid. Factories need automation, higher production, agile staff, and cyberattack proof secure systems to avoid financial or data loss.
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Recognizing the significance of factory modernization and digitalization, both companies came together to bring in new security solutions like Zero Trust to add to the existing defense strategies.
According to Zscaler, with Zero Trust, factories could reduce the risk of cyberattacks while working with remote staff, connecting to the cloud or internet and further increasing their output.
San Jose, California-based Zscaler is a cloud security company with a market capitalization of US$22.29 billion. Its Zero Trust Exchange is an integrated platform to protect customers from cyberattacks and data loss.
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Financials:
In the third quarter ended April 30, 2022, Zscaler’s revenue increased by 63% YoY to US$286.8 million. Its billings also grew 54% YoY to US$345.6 million.
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Yet, the company posted a GAAP net loss of US$101.4 million for Q3, 2022, compared to the GAAP net loss of US$58.5 million in the same quarter last year.
Its GAAP net loss per share diluted was US$0.72 compared to US$0.43 in Q3, fiscal 2021.
It reported a free cash flow of US$43.7 million, 15% of revenue, compared to US$55.8 million, 32% of revenue, in the April quarter of 2021. As of April 30, 2022, the cash and cash equivalents stood at US$1.66 billion.
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Outlook:
For Q4, fiscal 2022, the company expects revenue of US$304 million to US$306 million and non-GAAP income from operations in the range of US$33 million to US$34 million.
For full fiscal 2022, it expects revenue of around US$1.078 billion and non-GAAP income from operations of US$106 million to US$108 million.
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Bottom line:
According to Jay Chaudhry, CEO, Chairman, and founder at Zscaler, customers will be able to digitalize their factories faster by adding a Zero Trust access layer to their OT infrastructure. It will improve factory uptime and, at the same time, protect from cyber threats.
