Zscaler Q1 2025 Earnings: Great Prospects, Stretched Valuation
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Zscaler's Q1 2025 earnings report shows a slight increase in fiscal guidance, but concerns arise due to its high valuation and modest 13% year-over-year billings growth. The company faces competition and needs to demonstrate growth acceleration to justify its premium valuation.
December 03, 2024 | 1:15 pm
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Zscaler's Q1 2025 earnings report raises fiscal guidance slightly, but its high valuation of 36x forward free cash flow and modest 13% y/y billings growth raise concerns. The company needs to prove growth acceleration to justify its premium valuation amid competition.
Zscaler's slight increase in fiscal guidance is overshadowed by its high valuation and underwhelming billings growth, which may lead to short-term negative sentiment among investors. The need to demonstrate growth acceleration amid competition adds pressure.
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