ZS - Zscaler's Resilience: Navigating Success Beyond COO's Departure

2024-02-08 02:18:26 ET

Summary

• Despite the recent COO resignation, my optimism for Zscaler's investment remains strong.
• The Company's impressive revenue growth rates project a significant 36% CAGR for fiscal 2024.
• While the valuation is high at 68x forward non-GAAP operating income, I find it justified given ZS's solid fundamentals and the cybersecurity sector's robust performance.

Investment Thesis

Zscaler's ( ZS ) Chief Operating Officer has resigned, effective immediately . Given that Zscaler has succeeded in once again reigniting its traction and revenue growth rates, I declare that investors should look beyond this resignation as a material detraction from the bull case and instead focus on the company's underlying prospects....

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