Zscaler (ZS) BofA Securities 2024 Global Technology Conference summary

Market performance and competitive landscape

• Achieved 30% billing growth in Q3, outperforming expectations and reflecting strong market demand.

• Holds significant market share with 40% of Fortune 500 and over 30% of Global 2000 as customers.

• Transitioning go-to-market strategy with new leadership, expecting a 2-3% headwind in billings growth for fiscal 2025 due to higher attrition and ramping new sales reps.

• Sees large opportunity in upselling to existing customers and expanding into accounts with more than 2,000 employees globally.

Product differentiation and technology strategy

• Platform has expanded from secure web gateway to Zero Trust for users, workloads, and LAN, including SD-WAN and micro-segmentation.

• Emphasizes true Zero Trust architecture, eliminating exposed firewalls and VPNs, and providing security without revealing network details.

• Competes on architecture rather than price, differentiating from firewall-centric vendors like Fortinet and Microsoft.

• Integrates new solutions such as Risk360, UVM, and data security posture management (DSPM) to address broader security needs.

Go-to-market and customer engagement

• Focuses on deep engagement with large enterprises, leveraging experienced account executives and technical experts.

• For smaller customers, relies on partners and internet-based sales channels.

• Aims to educate organizations on the value and implementation of Zero Trust across all business units.