Zscaler Is Well-Positioned For Growth In 2024 As Cybersecurity Spending Remains Healthy

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Zscaler Is Well-Positioned For Growth In 2024 As Cybersecurity Spending Remains Healthy
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I have covered the technology sector for 25 years. Since 2003, I have been the managing editor of Tech-Stock Prospector, a monthly publication offering research and analysis on small- and large-cap companies. Prior to that, I analyzed the technology industry as senior writer for Louis Rukeyser's Wall Street newsletter.

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In fiscal Q4 , total revenue advanced 43% to $455.0 million, 5.7% above the consensus estimate. Record billings of $719.3 million were up 38%, only a slight deceleration from 40% growth in the previous quarter. Deferred revenue gained 41% to $1.439 billion, while total RPO of $3.51 billion was up 35%. Gross margin remained solid at 80.7%.

Zscaler has an expanding product portfolio that will help fuel growth going forward. In FY’23, emerging products accounted for 18% of new annual contract value , up from 14% in the prior year. For FY’24, emerging products are expected to account for more than 20% of all new business. While deal sizes in the cloud security segment are still relatively small, they have been on the increase in recent quarters.

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