Cybersecurity is ‘far more resilient than typical IT spend’: Zscaler CEO – Yahoo Finance




Zscaler CEO Jay Chaudhry joins Yahoo Finance Live to talk about the state of cybersecurity, why more people are showing interest in zero trust security, and the outlook for his company in 2023.
[AUDIO LOGO] A new study out today from Zscaler finds less than half of organizations in America feel fully confident in their use of cloud infrastructure. Joining us now to discuss the outlook for cloud services and the rest of the cybersecurity industry is Jay Chaudhry, Zscaler CEO. You’re with me, Jay?
JAY CHAUDHRY: Indeed. Thank you for the opportunity.
Good to have you here. What do you make of that revelation? Less than half of organizations in America feel fully confident. Why so? And what’s your takeaway from that?
JAY CHAUDHRY: Well, because the security technologies we have been using were built some 30 years ago. This is around firewalls and VPNs. The bad guys have moved on at a rapid pace. So companies are worried. CSOs are worried. In fact, it’s so pathetic that nowadays CSOs have to think that they have a breach, they just don’t know.
I think the world has to move to adapt new technologies, like zero trust. That’s the real answer. Many companies are making progress. And many are behind.
Yeah, Jay, certainly many companies are making progress. But many of those companies that have even shown an interest in this aren’t using it to their full potential. Talk about engagement and the opportunity there for your company in terms of growth.
JAY CHAUDHRY: Yeah. Tremendous opportunity. If you see our company, Zscaler, has been growing 70%, 80% year-over-year for the past several years. Even last year, over 60% growth. We just announced our Q1 earnings, 54% year-over-year revenue growth.
So what we did was when I started this company in 2008, I had no legacy security boxes to worry about. I could start from a clean slate. Think about doing security the new way, just like Tesla thought of doing cars in a clean way with electric engines rather than traditional engines.
The challenge you generally face is you have to educate the market. Inertia is a powerful thing. Many times customers are used to what they know. Our job is to make sure they understand the new technology, the benefit, so they are able to better protect their corporations. And more important, our country is able to protect our critical infrastructure and national interests.
So you mentioned those most recent numbers, revenue and billings up 54% and 37%. And yet we’re seeing the stock down 60% this year and down another 4% today. What is the investor disconnect?
JAY CHAUDHRY: Well, we are one of those companies where the market has high expectations. We delivered pretty good numbers. But the market does what it does. I have one focus, to really build innovative products and solve customers’ problems. If we do that, all the stock stuff gets taken care of in the long run. That’s what I focus on.
Jay, the risk of a recession, though, slowing macro landscape, you would think that would have an impact on some of your clients’ spending plans. How are you navigating this pretty uncertain time?
JAY CHAUDHRY: Back row is slowing things down. There’s a lot more deal scrutiny out there. But there are a couple of things in Zscaler’s favor. First of all, cyber is far more resilient than typical IT spend because every CIO and CSO knows that it needs to be done.
Secondly, while there is focus on reducing cost on CIOs, Zscaler actually reduces cost by eliminating a lot of point products and some of the extra costs. So when we talk to CIOs, the discussion turns to what all point products, what all legacy products can you eliminate to really reduce my cost and improve my security and user experience? Since we do all these three things, we actually have a high degree of interest across enterprises. So there’s a strong pipeline, strong engagement. But there is higher scrutiny, where the deals that used to get approved by CIOs, now they go to CFO. And there’s more scrutiny on the deals.
But Jay, you’re not just studying who is using your products, but how and where. What are you seeing in terms of the numbers, remote/hybrid work? And how will that impact the need for cyber as we move forward?
JAY CHAUDHRY: Yeah, the way Zscaler was designed, it was assumed that the user could be working from anywhere and applications could be in data center, in factory. It’s all in the cloud. So it doesn’t matter because in the zero-trust architecture, we don’t put users on the network. We connect them like a switchboard, from place A to an application B. It’s totally independent. That’s really what brings us security.
Now, having said that, when COVID happened and people have to work from home, we were the solution that is designed for stuff like that. So we had a lot of customer growth. Now, customer saw the benefit of zero-trust technology that Zscaler pioneered. And they embraced us big time. So that’s why over 40% of Fortune 500 companies depend upon Zscaler.
And our business has been growing. And we have been running a very profitable business. We have been doing significant positive cash flow, which many of the high-flying companies don’t do. So we are balancing our growth along with the bottom line.
Congrats on that. Jay Chaudhry, Zscaler CEO, great to have you here, sir. Really appreciate it.
Related Quotes
Shares of telecom giant Lumen Technologies (NYSE: LUMN) plunged 25.7% in November, according to data from S&P Global Market Intelligence. It wasn't difficult to ascertain why Lumen fell last month: The company announced on its Nov. 2 earnings call that it suspended its generous dividend. In the third quarter, Lumen once again disappointed the markets, with revenue declining 10.2% and non-generally accepted accounting principles (adjusted) earnings per share of $0.14 missing estimates by a wide $0.21.
These growth stocks have fallen out of favor on Wall Street, creating a buying opportunity for patient investors.
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Companies in The News Are: CBRL, SMAR, ZS, F
These growth stocks are down more than 60% from their highs, and both are now trading at attractive valuations.
Morning Consult Head of Industry Intelligence Joanna Piacenza joins Yahoo Finance Live to discuss a new report highlighting the fastest-growing brands of 2022 and what it says about the state of the U.S. consumer.
The consensus price target hints at a 32.3% upside potential for Okta (OKTA). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Sentiment of big Japanese manufacturers rose for the first time in four months in December, and the service-sector mood hit a three-year high, a Reuters monthly poll found, in a sign of gradual recovery from COVID-19 doldrums. Reflecting uncertainty in the outlook, however, the monthly poll, which parallels the Bank of Japan's (BOJ) tankan quarterly survey, found large manufacturers expected business conditions to hold steady in the coming three months, while the service-sector had a worsening outlook. The mixed readings underscored the uneven nature of Japan's recovery from the pandemic, as a slowdown in China raises the risk of a global downturn while a possible COVID-19 resurgence in Japan clouds the outlook.
Airbnb, Datadog, Fortinet, Paycom Software and VeriSign are included in this Analyst Blog.
Swedbank said on Tuesday it would grow average annual income by 3 percentage points more than costs as it looked to boost returns on equity by 2025, driven by a normalised interest rate environment and rising lending volumes and commissions. The Swedish bank also said it expected to have generated around 300 basis points of capital in excess of its target management buffer of 200 basis points by 2025 as it outlined strategy for the coming years. The rival of banks including Handelsbanken, SEB and Nordea said in a statement it would maintain its dividend policy of a 50% payout ratio and that any excess capital would be distributed to shareholders.
(Bloomberg) — Chile’s central bank held its benchmark interest rate unchanged following 11 straight hikes and promised to keep it steady until policymakers are certain that inflation is on its way toward target.Most Read from BloombergTrump Companies Are Convicted in NY Criminal Tax Fraud Trial‘Huge, Missing and Growing:’ $65 Trillion in Dollar Debt Sparks ConcernEx-Deutsche Bank Trader Builds $6 Billion Fortune on Trading BoomWorld Economy Heads for One of Its Worst Years in Three DecadesApple
“Gone are the days when we could hand-wave training away. Warfare is obviously way too complicated for that now,” said Caroline Baxter.
Yahoo Finance Live co-hosts Dave Briggs and Seana Smith review the meaning of the 2022 Oxford Dictionary Word of the Year: "Goblin Mode".
In this article, we will look at the 10 stocks that recently received revised price targets from analysts after their recent earnings. If you want to see more such stocks on the list, go directly to Analysts are Revising Prices Targets of These 5 Stocks Following Earnings. Notable stocks, including Marvell Technology, Inc. (NASDAQ:MRVL), Dollar […]South America's major Mercosur trade bloc, which includes regional powerhouses Brazil and Argentina, has been rattled by one of its smaller members, Uruguay, seeking to strike its own free-trade deals, leaders said at a summit on Tuesday. At the meeting in the Uruguayan capital Montevideo, the leaders sought to pressure their host over plans for go-it-alone trade deals with China and the Trans-Pacific Partnership (TPP). "The solution is not for each one of us just to do our own thing," said Argentine President Alberto Fernandez, chiding Uruguay.
Shares of Bank of America (NYSE: BAC) were down on Tuesday, falling as much as 6% during the trading day. As of 2:45 p.m. ET, Bank of America was down 5.5%, trading at $32.58. The major indexes were all down on Tuesday, led by the Nasdaq Composite, which was down 258 points, or 2.3%, while the Dow Jones Industrial Average was down 498 points, or 1.5%, and the S&P 500 was off 77 points, or 1.9%, as of 2:45 p.m. ET.
Trade data for November showed sharp falls in the country's exports and imports from a year earlier, undercutting positivity around relaxed coronavirus restrictions.
Yahoo Finance Live examines how Senator Mitch McConnell's rebuking of marijuana legislation may have impacted cannabis-tied stocks.
NIO, Li Auto, XPeng, ChargePoint Holdings and Blink Charging are included in this Analyst Blog.
Chances are good you're ahead of 25% of your peers.

source


CyberTelugu

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top

Adblock Detected

Please consider supporting us by disabling your ad blocker

Refresh Page