ZS Q1 FY25

1. Total Operating Revenue: Zscaler's total operating revenue as of October 31, 2024 is RMB627,955,000, a YoY growth of 26.4% from RMB496,703,000 in 2023.

2. Growth Drivers:

- Increased Market Demand: The accelerated digital transformation of enterprises has significantly increased the demand for cloud security solutions.

- Product Innovation: Zscaler launched multiple new products, expanding its market coverage.

- Expanded Customer Base: Successful marketing strategies have significantly increased Zscaler's customer base.

- Industry Trends: The overall growth of the cybersecurity industry has provided a good environment for Zscaler's revenue growth.

## Peer Comparison Analysis

1. Industry Overview Analysis:

- The cybersecurity industry has experienced rapid growth in the past year, with increased investment in cybersecurity by enterprises being the main factor driving industry revenue growth. According to market research, the cybersecurity market is expected to continue growing at a rate of over 10% in the future.

2. Peer Evaluation Analysis:

- Zscaler's operating revenue growth rate of 26.4% is higher than that of many competitors during the same period, indicating that Zscaler has gained an advantage in the market competition, possibly due to its unique technology and services.

## Conclusion

Zscaler's performance in 2024 has significantly improved, with strong revenue growth reflecting its competitiveness in the market. The company has successfully seized the opportunity of the rapid development of the cybersecurity industry through continuous product innovation and expansion of its customer base.

## Opportunities

1. Sustained Market Demand: With the continuous growth of cybersecurity demand, Zscaler is expected to further expand its market share.

2. New Product Promotion: The launch of new products can attract more customers and enhance brand influence.

3. Large Customer Expansion: Plans to expand the large customer base in 2024 will provide new momentum for revenue growth.

4. Strategic Partnership Opportunities: Cooperation with large enterprises can enhance Zscaler's market positioning and customer loyalty.

## Risks

1. Intensified Competition: Pressure from large competitors such as Palo Alto Networks may affect Zscaler's market share.

2. Market Volatility: Fluctuations in the cybersecurity market may affect the company's future revenue forecasts.

3. Customer Dependency Risk: Over-reliance on a few large customers may increase operational risks.

4. Lagging Technology Updates: Failure to keep up with technological innovations in a rapidly evolving environment may affect competitiveness.

Through the above analysis, Zscaler needs to pay attention to industry competition dynamics, maintain technological innovation, and increase the development of new customers to address potential risks in its future operations.