Zscaler (ZS) Goldman Sachs Technology Communacopia and Technology Conference summary

Medium-term outlook and growth drivers

• FY 2025 billings growth is back-half weighted due to scheduled billings from prior years, with 7% growth in the first half and 23% in the second half.

• Underlying business growth in new, upsell, and renewals is in the high teens to above 20% range.

• Leadership changes, including a new CRO and CMO, have positioned the company for stronger execution and growth.

• Sales productivity is expected to increase as new sales reps ramp up, further supporting second-half growth.

• The company is targeting a $96 billion serviceable addressable market, with significant opportunity ahead.

Competitive landscape and market positioning

• Competition at the large enterprise level has decreased, with the company focusing on cross-sell and upsell in this segment.

• Historical competitors in network security have faded, and firewall vendors are seen as making defensive moves.

• The company’s platform enables cost savings by replacing legacy products, which is a key differentiator.

• Strong brand recognition and repeat purchases among Fortune 1000 CXOs reinforce market leadership.

• Coverage is strongest in large enterprises, with limited but meaningful presence in the lower end of the market.

Go-to-market strategy and organizational changes

• Proactive leadership upgrades were made to scale from $2 billion to $5–10 billion in revenue.

• New sales leadership from ServiceNow has accelerated the transition to an account-focused sales model.

• High attrition was managed as part of the transition, with rapid hiring of experienced, account-focused sales reps.

• Sales kickoff events and customer stories have energized the team and reinforced execution priorities.

• Execution and people are seen as the key drivers for the next phase of growth.