Why Zscaler Needs More Cloud Cybersecurity
Zscaler (NASDAQ: ZS) continues to deliver strong performance. During the past quarter, the cloud cybersecurity specialist posted guidance-beating results, and management raised its full-year outlook. But revenue growth is decelerating and losses are increasing as the company ramps up its sales and marketing efforts. Zscaler needs more cloud cybersecurity products to boost its revenue growth and improve its profitability.
Zscaler is taking advantage of the secular shift to cloud computing. Its two products leverage its cloud platform to provide cloud cybersecurity services. Zscaler Internet Access (ZIA) protects Internet users against malicious traffic, programs, and files, among other threats. Meanwhile, Zscaler Private Access (ZPA) allows access to remote applications in a secure way.
The adoption of software as a service, or SaaS, such as Microsoft's Office 365 represents a strong tailwind for ZIA, and the need to work in a secure way from untrusted networks boosts ZPA usage. In addition, Zscaler's solutions remain competitive. The research company Gartner positioned Zscaler as a leader for secure web gateways in terms of ability to execute and completeness of vision, far ahead of its competitors.
Source Fool.com
