Over the past few years, news headlines featuring the word "cybersecurity" have been increasingly found on the Web. Hackers are not petty, they target the largest industrial facilities, state-owned companies, in order to get a huge ransom for each sudden attack. According to Cybersecurity Ventures, the damage caused by hackers in 2021 totals more than $6 trillion.
In this situation, even a more or less significant business can not afford to save on security. Today, the services of Zscaler, a company specializing in digital security, are particularly popular.
The company was founded in 2008, the main activity is the development and implementation of software for security:
- internet resources;
- web systems.
It also produces antivirus software, monitors consumer functions in cloud and mobile services, and the Internet environment. The main feature of Zscaler programs is that they provide protection for the end user, not the server, which makes it possible to block even the most modern web threats.
The issuer is equipped with two Access modules:
- Internet. Designed to protect the client from threats coming from the network.
- Private. It is intended for organizations that provide their employees and customers with access to their own applications, ensuring the security of the network.
The popularity of the service, according to information from statistical studies, has increased 75 times over the current decade. This indicates a high demand for the company's services. The list of clients of the enterprise includes IT and media corporations, as well as third-party users who have a business on the network.
Zscaler in support
Since the service practices a cloud-based method of ensuring security in Internet networks, the software is able to protect the networks and endpoints of customers even if their users have accessed the services remotely. The platform works like a filter, clearing all the information entering the internal network from the Internet. The service is connected to the cloud, so it does not require complex equipment and its configuration to connect it. All devices are connected locally.
Also, the ZPA service has been developed and successfully operates on the basis of the enterprise. It is necessary to protect client applications and works on the principle of zero trust. That is, each consumer must be identified for the next login to the application. This gives applications special protection, the data remains almost invisible to other people and systems, because it is always inaccessible for direct entry.
About prospects and solutions
For several years in a row, the demand for the company's services has been growing exponentially. This is due to the fact that in the conditions of the pandemic, a lot of workers went to work remotely. This is not to say that the previous security scheme did not function well enough, but it simply was not designed for more complex connections from external resources.
Zscaler blocks almost 7 million violations every day. The latest report says about 20 million paid products and 4500 direct consumers. It is logical that with such a demand for the service, sales growth in approached 64%. Due to high-quality services, the company has a net retention rate of 126%.
Zscaler financial data
For the 3rd reporting period of the same year, the issuer showed revenue in the amount of 176.4 million, which is 60% higher than for the same period in 2020. Net profit, without the expenditure part, revealed an increase, more than doubling and reaching 21.4 million or $0.15 per asset.
With an annual revenue of 601.9 million and a market capitalization of 25 billion, the multiplier is 43. This is a high level, which is much more impressive than that of Tesla. With the current stock spurt up, Tesla's shares may fall in price and reach a minimum in a few years.
What to do with the shares?
The company continues its aggressive policy, presenting its services in foreign markets. For today's customers, the company offers favorable bonuses and discounts. Due to fresh partnerships, the issuer is growing. Zscaler does not get tired of investing in its own development in order to integrate its developments into manufactured products in order to increase profits in the future. Such an approach will lead to a short-term appearance of losses, but in general it will be the start to serious victories in the future.
Despite the fact that the company is considered far from profitable, during the year it received 127 million free funds. This is great news, saying that Zscaler reproduces a large amount of capital on its own to support its own development.
The structure already has more than 20 million personal subscribers, but the company's management is confident that in the near future this number will increase to 600 million. According to the data provided by the management, the targeted market is estimated at $72 billion, which is more than a hundred times higher than the profit for the current year.
The services offered by Zscaler are very much needed by users today, the demand for them will continue in the coming years. A recent springboard of growth was seen in May. The dynamics were so powerful that assets grew by inertia without stopping. Now the value of the paper is held at $276. We are waiting for the continued growth to $320 per unit.