Zscaler, Inc. (ZS): History, Ownership, Mission, How It Works & Makes Money

In today's digital landscape, is your organization truly secure? Zscaler, Inc. (ZS), a leader in cloud security, offers a robust Zero Trust Exchange platform designed to protect against cyberattacks and data loss, processing over half a trillion daily transactions as of fiscal year 2024. But how did Zscaler rise to prominence, who steers this innovative company, and what exactly does it do to safeguard businesses? Dive in to explore the history, ownership, mission, workings, and revenue streams that define Zscaler's critical role in modern cybersecurity.

Zscaler, Inc. (ZS) History

Zscaler, Inc. Founding Timeline

Year established

Zscaler was established in 2007.

Original location

The company was originally located in Santa Clara, California.

Founding team members

The founding team members were:

• Jay Chaudhry: Founder, Chairman, and CEO.
• Kailash Kailash: Co-founder.

Initial capital/funding

Zscaler's initial funding included a $12 million Series A round led by Norwest Venture Partners in 2008. This initial capital was crucial for developing their cloud-based security platform.

Zscaler, Inc. Evolution Milestones

Zscaler, Inc. Transformative Moments

• Transition to a Cloud-Native Architecture: Early on, Zscaler made a pivotal decision to build its security services on a cloud-native architecture. This allowed for greater scalability, reduced hardware costs, and more efficient updates compared to traditional on-premises security solutions.
• Focus on the Zero Trust Exchange: Zscaler developed the Zero Trust Exchange, which fundamentally changed how businesses approach security. By connecting users and applications directly, without bringing traffic through the corporate network, Zscaler improved security and user experience.
• Strategic Acquisitions: Zscaler has made several strategic acquisitions to enhance its platform capabilities:
  • Edgewise Networks: Enhanced workload protection in cloud environments.
  • Smokescreen Technologies: Improved active defense and threat deception techniques.
• Expansion of Product Offerings:
  • Zscaler Internet Access (ZIA): Provides secure internet and web access.
  • Zscaler Private Access (ZPA): Enables secure remote access to internal applications without VPNs.

For more in-depth information about investor profiles, you might find this resource helpful: Exploring Zscaler, Inc. (ZS) Investor Profile: Who’s Buying and Why?

Zscaler, Inc. (ZS) Ownership Structure

Zscaler, Inc. features a mix of institutional, insider, and retail ownership, reflecting a balance of investment and stakeholder interests.

Zscaler, Inc.'s Current Status

Zscaler, Inc. is a public company, trading on the Nasdaq Global Select Market under the ticker symbol ZS.

Zscaler, Inc.'s Ownership Breakdown

Understanding Zscaler's ownership structure provides insights into the distribution of control and influence within the company. Here's a breakdown:

Zscaler, Inc.'s Leadership

Zscaler's leadership team is composed of experienced individuals who guide the company's strategic direction and operations:

• Jay Chaudhry: Chairman and CEO
• Remo Canessa: Chief Financial Officer
• Amit Sinha: President

These leaders are instrumental in driving Zscaler's growth and innovation in the cloud security space. You can learn more about the company's goals and principles at Mission Statement, Vision, & Core Values of Zscaler, Inc. (ZS).

Zscaler, Inc. (ZS) Mission and Values

Zscaler's mission is to enable secure digital transformation, aiming to provide seamless and safe access to applications and data, regardless of location. The company values innovation, customer success, and integrity, striving to create a world where security is always on and always simple.

Zscaler's Core Purpose

Official mission statement

Zscaler's official mission statement is: To enable secure digital transformation by reimagining security for the cloud era, ensuring a seamless and secure experience for every user, application, and device, anywhere.

• Focuses on enabling secure digital transformation for businesses.
• Reimagines security specifically for the cloud era.
• Aims to provide a seamless and secure experience for all users, applications, and devices, irrespective of location.

Vision statement

Zscaler envisions a world where security is simple, seamless, and everywhere. Their vision is to be the leading cloud security platform that protects organizations from cyber threats while enabling them to embrace the cloud and mobile technologies.

• Strives for simplicity and seamlessness in security solutions.
• Aims to be the leading cloud security platform.
• Focuses on protecting organizations from cyber threats.
• Enables the adoption of cloud and mobile technologies securely.

Company slogan/tagline

Zscaler's tagline, though not explicitly declared in the same way as their mission and vision, often revolves around the concept of 'Zero Trust.' While not a formal tagline, the essence captures their approach:

• Zero Trust Network Access: This embodies Zscaler's core philosophy of trusting no one and verifying everything, ensuring secure access to applications and resources.

To delve deeper into the ownership and investor perspective, check out: Exploring Zscaler, Inc. (ZS) Investor Profile: Who’s Buying and Why?

Zscaler, Inc. (ZS) How It Works

Zscaler operates as a cloud-native security platform, providing internet security, web security, firewalls, sandboxing, and intrusion prevention, all delivered as a service. This approach allows organizations to secure their networks and applications without the need for traditional on-premises hardware.

Zscaler's Product/Service Portfolio

Zscaler's Operational Framework

Zscaler's operational framework is built around its cloud-native platform, which is designed to deliver security as a service. Key aspects of their operations include:

• Global Cloud Infrastructure: Zscaler operates a global network of data centers, allowing it to deliver its services with low latency and high availability to customers around the world.
• Zero Trust Architecture: Zscaler's solutions are based on a zero trust architecture, which means that no user or device is trusted by default. This approach helps to prevent unauthorized access to sensitive data and applications.
• Subscription-Based Model: Zscaler primarily uses a subscription-based revenue model, providing recurring revenue streams and fostering long-term customer relationships. As of the fiscal year 2024, Zscaler reported total revenue of $1.62 billion, a 32% increase year-over-year, demonstrating the effectiveness of this model.
• Data-Driven Insights: The platform collects and analyzes vast amounts of security data, providing customers with valuable insights into their security posture and helping them to identify and respond to threats.

Zscaler's Strategic Advantages

Zscaler's success in the cybersecurity market can be attributed to several strategic advantages:

• Cloud-Native Architecture: Zscaler's cloud-native platform is more scalable, flexible, and cost-effective than traditional on-premises security solutions.
• Zero Trust Approach: The company's zero trust approach aligns with the evolving security needs of organizations, as they increasingly adopt cloud technologies and remote work models.
• Comprehensive Security Stack: Zscaler offers a comprehensive suite of security services, providing customers with a single platform to address a wide range of security challenges.
• Strong Market Position: Zscaler is recognized as a leader in the Secure Access Service Edge (SASE) market, with a strong brand reputation and a large customer base.
• Focus on Innovation: Zscaler continues to invest in research and development, introducing new features and services to meet the evolving needs of its customers.

To gain more insights into Zscaler's financial performance, you might find this resource helpful: Breaking Down Zscaler, Inc. (ZS) Financial Health: Key Insights for Investors

Zscaler, Inc. (ZS) How It Makes Money

Zscaler primarily generates revenue by offering a suite of cloud-based security services that protect businesses from cyber threats. These services ensure secure access to applications and data, regardless of the user's location.

Zscaler's Revenue Breakdown

Zscaler's revenue is primarily derived from subscriptions to its cloud-based security platform. These subscriptions provide customers with continuous access to Zscaler's security services and are typically billed annually or multi-year. Professional services, which include consulting, implementation, and training, constitute a smaller portion of the overall revenue.

Zscaler's Business Economics

Zscaler operates on a subscription-based model, providing recurring revenue and high customer retention rates. The company invests heavily in research and development to enhance its platform and stay ahead of emerging cyber threats. Key aspects of Zscaler's business economics include:

• Subscription-Based Model: Offers predictable and recurring revenue streams.
• Scalability: Cloud-native architecture allows for efficient scaling to accommodate growing customer demands.
• High Retention Rates: Strong customer satisfaction and the mission-critical nature of its services contribute to high renewal rates.
• Network Effects: The more users and data processed through the platform, the more intelligent and effective the security becomes.

Zscaler's Financial Performance

Zscaler's financial performance reflects its strong position in the cloud security market. Key highlights include:

• In fiscal year 2024, Zscaler's revenue reached $1.905 billion, a 32% increase year-over-year.
• Calculated billings for fiscal year 2024 were $2.381 billion, up 28% year-over-year.
• The company's gross margin remains high, at approximately 79% for fiscal year 2024, reflecting the scalability of its cloud-based platform.
• Zscaler is focused on expanding its customer base and increasing adoption of its platform, driving long-term growth.

To gain more insights into Zscaler's investor profile, you can explore this resource: Exploring Zscaler, Inc. (ZS) Investor Profile: Who’s Buying and Why?

Zscaler, Inc. (ZS) Market Position & Future Outlook

As of April 2025, Zscaler is a leader in cloud-based internet security, holding a strong position in the Secure Access Service Edge (SASE) market. The company's future outlook is positive, driven by the increasing demand for cloud security solutions and the shift towards zero trust architectures.

Competitive Landscape

Opportunities & Challenges

Industry Position

Zscaler's strong industry position is underpinned by several factors:

• Technological Innovation: Zscaler was one of the first to offer a comprehensive security cloud platform and continues to innovate with new features and services.
• Market Leadership: Recognized as a leader in the SASE market by industry analysts like Gartner and Forrester.
• Scalability and Reliability: Zscaler's cloud-native architecture provides scalability and reliability, essential for large enterprises.
• Strategic Vision: The company's focus on zero trust and cloud security aligns with the evolving needs of modern businesses.

To learn more about the company's mission, vision, and core values, visit: Mission Statement, Vision, & Core Values of Zscaler, Inc. (ZS).