Zscaler Inc · NASDAQ:ZS
Zscaler — Investor Presentation (May 2025)
48 slides from Zscaler's investor presentation, May 2025
Slide 1: Corporate IR Presentation May 2025
Corporate IR Presentation May 2025
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements This presentation has been prepared by Zscaler, Inc. (“Zscaler”) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or
Slide 3: Zscaler highlights
Zscaler highlights Founded in Pioneer and leader Strong growth at scale 2007 in cloud security PERFORMING BEYOND RULE-OF-40 Redefining network security, with the world’s largest in-line security cloud and a ~$2.9B 23% 114% 18% 100% SaaS business model. annual recurring growth y/y dollar-based FCF re
Slide 4: The leader in secure digital transformation
The leader in secure digital transformation World’s Largest Security Cloud Pioneer And Market Leader ~$2.9B 500B+ Daily transactions 14 Years ~45% Annual recurring Gartner MQ Fortune 500 >20x Google revenue4 leadership are customers searches1 50M (As of Q3’25) 500T+ >35% >70 Users secured across Dai
Slide 5: New category leaders are born when megashifts take place
New category leaders are born when megashifts take place Data center and hardware Applications in the data center On-Premises security 2025 Zscaler, Inc. All rights reserved
Slide 6: A new world of cloud and mobility, secured
OUR VISION A new world of cloud Securing any-to-any and mobility, secured. connectivity TRANSFORMATIONAL ZERO TRUST PLATFORM Secure 35x Fewer infected machines Reduce Business Risk Simplify 70% Infrastructure cost reduction Eliminate Cost and Complexity Transform 1 Day to onboard M&A users Increase
Slide 7: 4 stages of a breach in firewall/VPN architectures
4 stages of a breach in firewall/VPN architectures Creates Risk In The Cloud And Mobile World STEP 1 STEP 2 STEP 3 STEP 4 They find you (recon) They compromise you They move laterally They steal your data Everything exposed to the Infect users, devices, and workloads Find high-value targets for Avoi
Slide 8: Disrupting a 30-year-old paradigm in network security
Zscaler: Disrupting a 30-year-old paradigm in network security Two Opposing Architectures Network & Firewall-centric Architecture Zero Trust Architecture Secures a trusted network, Rigid, Complex and a Security Risk Users, apps, and devices become islands Agile, Simple and Secure connecting one-to-m
Slide 9: Disrupting a 30-year-old paradigm in network security
Zscaler: Disrupting a 30-year-old paradigm in network security Our architectural differentiation gives us a long-term advantage Firewall / VPN Zero Trust Firewalls are like bridges Zscaler is like a switchboard Connect users to a network, Securely connects one-to-one based on policies, where everyth
Slide 10: Global footprint and operational excellence
Global footprint and operational excellence Competitive advantage in delivering a mission critical service 160+ data centers 500B+ transactions per day 9B+ enforcements per day 250K+ security per day updates 1 Availability SLA 99.999% 2 100% renewable energy 3 Proven elasticity & scale 4 Security ha
Slide 11: Focused innovation engine and extensible platform
Focused innovation engine and extensible platform Proven history of rapid innovations & growth $2.5B ARR $2B NASDAQ- ARR 500B* 100 INDEX 300B $1B IPO ARR 500th PATENT FILED INDUSTRY’S 1 ST 200B $200M Business Multi-Tenant ARR Insights Cloud Security Unified 400th Platform 50B PATENT Vulnerability Mg
Slide 12: Zscaler platform offerings
Zscaler platform offerings ZSCALER FOR ZSCALER FOR AI/Analytics Users ▪ Secure Internet Access (ZIA) ▪ Unified Vulnerability Mgmt ▪ Secure Private App Access (ZPA) ▪ Risk Scoring (Risk360) ▪ Digital Experience (ZDX) ▪ Business Insights POSTURE INL INE CL OUD ▪ Data Protection AI CL OUD CL OUD ZERO T
Slide 13: The network effects of a disruptive platform
500B+ 60+ ~$2.9B 80% Daily Threat intel Annual Recurring Gross transactions 2 partners 2 Revenue1 Margins1 More Data More Customers Sitting inline is a big advantage Repeatable blueprint for delivering value The network effects of a disruptive Deeper Zscaler Extensible Insights Platform Innovation p
Slide 14: Our platform architecture creates a unique AI opportunity
Our platform architecture creates a unique AI opportunity 1 2 3 500T+ daily signals AI-Powered Inline Proxy Architecture Driving Customer Value The world’s largest security cloud Sitting in the natural path of traffic Monetize directly through separate SKUs between all users, apps, and devices and i
Slide 15: Driving the Zero Trust Everywhere transformation
Driving the “Zero Trust Everywhere”1 transformation Our expanded platform enables customers to implement Zero Trust Everywhere1 Zero Trust Users Zero Trust Cloud Zero Trust Branch ZIA / ZPA Workload Protection Segmentation Any User, Any App, Any Workload Any Workload anywhere anywhere or App or App
Slide 16: Increasing adoption of Zero Trust among customers
Increasing adoption of Zero Trust among customers Goal: >390 “Zero Trust Everywhere”1 enterprises2 by FY26 390+ ➢ Launched surgical field campaigns to enable more “Zero Trust Everywhere”1 customers 210+ ➢ Customers can leapfrog into Zero Trust by skipping the appliance refresh cycle, freeing themsel
Slide 17: Leading in AI Security, on multiple fronts
Leading in AI Security, on multiple fronts Rapid adoption of AI means the tech stack must Zscaler's in-line proxy cloud is uniquely positioned to also evolve with a higher priority on security drive AI adoption and AI-powered security ① Driving AI adoption by securing the use of AI apps Security for
Slide 18: Secular tailwinds powering adoption
Secular tailwinds powering adoption Wave 1 Wave 2 Wave 3 5G Enabling safe edge computing IoT/OT Bring zero-trust to IoT/OT AI Enabling safe AI use, fighting AI with AI IaaS/Public Cloud Secure cloud workload, app-to-app communication (Azure/AWS) Work from Fast and secure access to applications Anywh
Slide 19: Zscaler platform consolidates point products and simplifies IT
Zscaler platform consolidates point products and simplifies IT Design once, solve for many Global Load MPLS Firewall / IPS CASB Balancing (SD-WAN) Proxy / URL Filter DDoS SSPM Microsegmentation Outbound Anti-Virus Inbound External Firewall / IPS Network and endpoint Security CSPM DMZ Internet DLP DM
Slide 20: A critical integration partner positioned in the path of data
A critical integration partner positioned in the path of data APPS / WORKLOADS SaaS Data IaaS/PaaS Internet Center OCI IDENTITY MANAGEMENT OPERATIONS POSTURE API INLINE CLOUD AI CLOUD API CLOUD SECURE COMMUNICATIONS ENDPOINT SECURITY USERS / DEVICES / OFFICES BRANCH ROUTER / SD-WAN API API 2025 Zsca
Slide 21: Enabling digital transformation requires a unique sales process
Enabling digital transformation requires a unique sales process Lead Gen Identify pain points SI/SP/VARs Transformation Team: ex-CXOs Driving Top-of-the-funnel initiatives CXO Events Architectural Demonstration Solution Architects value through C U S TO M E R F O C U S high-touch NPS >70 engagement
Slide 22: Go-to-market model built to capture our addressable market
Go-to-market model built to capture our addressable market Targeted account-based sale with focus on enterprises, while expanding to smaller enterprises Winning with majors & large enterprises Majors 40k+ employees E X P AN D I N G TO E N TE R P R I S E S E G M E N T High-touch TAM: 1.1k orgs with 1
Slide 23: Take-off teams to drive new product pillars
Take-off teams to drive new product pillars New Product Take-off teams: ARR1 • Data Protection Broader • Zero Trust Networking Go-to-Market • AI Cloud Solutions organization Take-off team Quarters 1. For illustrative purposes only 2025 Zscaler, Inc. All rights reserved 23 © 2025
Slide 24: Strong customer adoption of our emerging products
Mid-to- high-20s Emerging Products* 24% % of New Business Strong customer 19% adoption of our emerging products High Single Digits 14% continues Low Single Digits *Emerging products includes: FY'20 FY'21 FY'22 FY'23 FY'24 FY'25E (a) Zscaler Digital Experience (ZDX) (b) Zero Trust for Branch and Clou
Slide 25: Financial Overview
Financial Overview
Slide 26: Consistent and strong revenue growth
Consistent and strong revenue growth ($ in millions) Annual revenue / YoY growth Quarterly revenue / YoY growth 56% 62% 48% 34% 43% 40% 35% 32% 30% 26% 23% 23% $2,168 $678 $628 $648 $593 $1,617 $553 $525 $497 $455 $1,091 $673 FY21 FY22 FY23 FY24 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Note:
Slide 27: Strong YoY growth in calculated billings
Strong YoY growth in calculated billings ($ in millions) Annual billings / growth Quarterly billings / YoY growth 70% 59% 37% 29% 38% 34% 27% 30% 27% 13% 18% 25% $2,623 $911 $785 $2,036 $719 $743 $628 $628 $1,481 $517 $457 $934 Note: Fiscal year ended July 31. 2025 Zscaler, Inc. All rights reserved
Slide 28: Sustained Large customer momentum
Sustained Large customer momentum $100K+ ARR Customers $1M+ ARR Customers 18% CAGR 27% CAGR 3,363 642 ~45% Fortune 500 Customers1 400 2,432 >35% Global 2000 Customers1 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 2025 Zscaler, Inc. All r
Slide 29: Annual pricing model provides significant expansion opportunities
Annual pricing model provides significant expansion opportunities TRANSFORMATION BUNDLE: ~3X BUSINESS BUNDLE: ~1.5X PRO BUNDLE: 1X User Protection ZIA2 Data Protection3 ZPA ZDX $175 Per user1 $45 +$60 +$45 +$25 Workload Protection CSPM Workload segmentation Workload communication $155 Per workload4
Slide 30: Large Serviceable Market Opportunity (SAM)
Large Serviceable Market Opportunity (SAM) Potential future markets >600M 3rd party vendors and customers of customers potential B2B users2 >7B IoT/OT devices4 Incremental markets Zscaler 267M users 338M workloads 1.2B IoT/OT at commercial customers with <2K employees 1 devices 3 at commercial custo
Slide 31: Bigger long-term Total Addressable Market (TAM)
Bigger long-term Total Addressable Market (TAM) Potential >600M >7B B2B users5 IoT/OT devices4 $59B User SAM2 Incremental $175 ARPU x 335M users focused on enterprises with 2k+ employees 267M commercial users2 1.15B 338M $23B Workload SAM3 IoT/OT devices4 workloads3 $155 Price Per Workload x 150M wo
Slide 32: Upsell opportunity on existing customers
>6x >6x +ZPA all users +Data Protection +High-end Upsell opportunity on Bundle ZIA and ZPA alone with +ZIA existing customers* users 1x Incremental ARR from all Incremental ARR from all Incremental ARR from all Adjusted ARR*, as of Incremental ARR from all Potential ARR with employees upgrading to t
Slide 33: Significant international revenue
Significant international revenue Revenue by geography Historically, approximately 50% of our Based on Q3’25 revenue revenue has come from outside Americas Early big wins in Europe Americas Europe, Middle Continued investment after early success with G2000 East and Africa Asia Pacific customers Earl
Slide 34: Attractive cloud gross margins
Attractive cloud gross margins Non-GAAP gross margin1 Key factors Purpose-built, multi-tenant architecture 81% 81% 81% 81% Each subsystem optimized for high throughput, reducing the number of servers needed Cloud operations Highly automated, which requires lower head count to operate Peering with co
Slide 35: Investing for growth to capture large opportunity
Investing for growth to capture large opportunity Non-GAAP expenses1 and non-GAAP operating margin1 as % of revenue FY21 FY22 FY23 FY24 Key factors Operating 60%+ contribution margins on Margin renewal cohorts in years 2 and 3 Cost of Scale of our multi-tenant cloud benefits cost Revenue of revenue
Slide 36: Long-term model (Non-GAAP)
Long-term model (Non-GAAP) Non-GAAP operating margin Non-GAAP free cash flow margin FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 1. Non-GAAP gross margin is defined as GAAP gross margin, excluding stock-based compensation expense and amortization of acquired intangible assets. Starting in FY21, payroll t
Slide 37: Financial Appendix
Financial Appendix
Slide 38: Explanation of Non-GAAP Financial Measures
Explanation of Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we believe that the presentation of non- GAAP financial information provides important supplemental information to ma
Slide 39: Appendix A: GAAP to Non-GAAP Reconciliation
Appendix A: GAAP to Non-GAAP Reconciliation $ in thousands FY'21 FY'22 FY'23 FY'24 Revenue $673,100 $1,090,946 $1,616,952 $2,167,771 GAAP Gross Profit $522,783 $848,664 $1,254,120 $1,690,642 Stock-based compensation expense and related payroll taxes 15,272 25,292 40,297 52,766 Amortization expense o
Slide 40: Appendix A: GAAP to Non-GAAP Reconciliation (cont.)
Appendix A: GAAP to Non-GAAP Reconciliation (cont.) $ in thousands FY'21 FY'22 FY'23 FY'24 GAAP total operating expenses $730,595 $1,176,093 $1,488,743 $1,812,119 Stock-based compensation expense and related payroll taxes 263,290 404,728 417,518 496,334 Litigation related expenses — — — — Amortizati
Slide 41: Appendix A: GAAP to Non-GAAP Reconciliation (cont.)
Appendix A: GAAP to Non-GAAP Reconciliation (cont.) $ in thousands FY'21 FY'22 FY'23 FY'24 Free cash flow $143,743 $231,332 $333,619 $584,950 Revenue 673,100 1,090,946 1,616,952 2,167,771 Free cash flow margin 21% 21% 21% 27% Net cash provided by operating activities $202,040 $321,912 $462,343 $779,
Slide 42: Appendix
Appendix
Slide 43: The castle-and-moat/hub-and-spoke approach
OPTIMIZED TO CONNECT USERS TO APPS IN THE DATA CENTER The castle-and-moat/hub-and-spoke approach was based on the premise that all enterprise users, data and applications resided on the network. 1 A few data centers act as “hubs” 2 Data centers connect to the public internet via security stacks, as
Slide 44: Perimeter security appliances to protect the network
PERIMETER SECURITY APPLIANCES TO PROTECT THE NETWORK Within the castle, everything is trusted; outside of the castle, everything is untrusted. If an attacker gains access to the network by crossing the “moat,” they can also access any data and systems within. 1 The network is set up with a perimeter
Slide 45: Zscaler Zero Trust Exchange architecture
Zscaler Zero Trust Exchange architecture SaaS Internet Data IaaS/PaaS Center SAP 2025 Zscaler, Inc. All rights reserved 45 © 2025
Slide 46: Reduce your carbon footprint with the Zscaler Zero Trust Exchange
Reduce your carbon footprint with the Zscaler Zero Trust Exchange Secure your digital transformation while lowering your environmental impact Zscaler is carbon neutral since 2022 Efficient architecture with dramatically and has set a goal to reach net zero by 2025 less environmental impact Annual Ca
Slide 47: Legacy network security versus Zscaler Zero Trust Architecture
Legacy network security versus Zscaler Zero Trust Architecture Comparing connecting users to networks versus users to apps with Zscaler 2025 Zscaler, Inc. All rights reserved 47 © 2025
Slide 48: ZDX: Pinpoint the root cause of user experience challenges
ZDX: Pinpoint the root cause of user experience challenges End-to-end network visibility by hop MOBILE WORKER PUBLIC WIFI PEERING OFFICE WORKER CORP WIFI VPN/TUNNEL ON MOBILE CHICAGO DALLAS 2025 Zscaler, Inc. All rights reserved 48 © 2025