
Zscaler (ZS) Stock Forecast & Price Target
Zscaler (ZS) Analyst Ratings
Bulls say
Zscaler reported calculated billings of $743 million for the second quarter, representing an 18% year-over-year growth that surpassed street expectations by $23 million, driven significantly by a 25% increase in unscheduled billings due to up-sells and renewals. The company also demonstrated robust revenue growth of 23% year-over-year, reflecting strong performance in its Data Protection segment, with net new annual contract value (ACV) growing over 40% as a result of significant up-sells in retail and financial services. Additionally, the consistency in billings growth, alongside increased sales capacity and productivity, bolsters investor confidence in Zscaler's operational capabilities and future execution prospects for fiscal year 2025.
Bears say
Zscaler faces significant challenges, including higher-than-expected sales force attrition that may disrupt sales and renewal cycles, likely impacting revenue growth. Furthermore, management has indicated that the introduction of new products could exert downward pressure on gross margins due to the emphasis on speed-to-market, which may strain profitability. The competitive landscape is intensifying, and without widespread adoption of its cloud platform, Zscaler's ability to meet growth estimates and leverage operating expenses could be severely impeded.
This aggregate rating is based on analysts' research of Zscaler and is not a guaranteed prediction by Public.com or investment advice.
Zscaler (ZS) Analyst Forecast & Price Prediction
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