Customer adoption and renewal risk
Revenue depends on enterprises adopting the platform and expanding usage over time.
- Scope
- New customer wins, renewals, add-on sales
- Materiality
- high
Zscaler, Inc.
Zscaler is a U.S.-based cloud security company that delivers security services through its cloud platform rather than through on-premises appliances. Its core offerings help enterprises secure internet access, private application access, and user-to-application connections across distributed workforces and branch locations.
76,9 %
−1,6 %
+23,3 %
2.01
2.01
| % | |
|---|---|
| Cloud security subscriptions | 98% Subscription access to Zscaler's cloud platform, including ZIA, ZPA and related security functionality. |
| Support services | 0% Ongoing customer support tied to subscription deployments and platform usage. |
| Professional services | 2% Implementation, mapping, network design and training services sold alongside subscriptions. |
Zscaler sells to enterprises of all sizes, with a strong concentration in large global organizations and public-sector...
- Large enterprise accountsprimary
Buy ZIA, ZPA and premium bundles to secure large user bases and complex networks; strategically critical.
- Mid-market and smaller enterprisessecondary
Adopt the cloud platform for internet and private access security as they modernize IT environments.
- Public sector and educationsecondary
Use the platform to secure access for distributed users and sensitive data environments.
- Existing customers expanding usageprimary
Add users, modules and higher-tier bundles after initial deployment; a key growth engine.
Zscaler operates globally, with users in over 185 countries and customers across major geographies...
- •United States remains the largest single market for enterprise demand
- •Nearly half of revenue comes from customers outside the U.S.
- •Users are deployed in over 185 countries
- •Expansion focus includes Asia Pacific, Latin America and the Middle East
- •Global channel partners help reach international enterprise buyers
Zscaler's strategy centers on expanding its customer base, deepening adoption within existing accounts, and extending...
01
New customer acquisitionshort-term
Expands the installed base and creates future renewal and expansion opportunities.
02
Land-and-expand within existing accountsshort-term
Raises revenue per customer by adding users, solutions and premium bundles.
03
Channel partner expansionmedium-term
Extends market reach and accelerates customer fulfillment through third parties.
04
Product innovationmedium-term
Keeps the platform differentiated and broadens the addressable market.
Zscaler faces execution risk in converting enterprise demand into new wins and renewals, especially when customers...
Intense competition
Security vendors, cloud providers and telecom partners can offer competing solutions.
- Scope
- Pricing, market share, product differentiation
- Materiality
- high
Service availability risk
The platform must operate continuously to protect customer traffic and maintain trust.
- Scope
- Cloud platform uptime, performance, incident response
- Materiality
- high
Macroeconomic purchasing delays
Large enterprise deals can be slowed by customer scrutiny and approval processes.
- Scope
- Sales cycles, deal timing, pipeline conversion
- Materiality
- medium
Geopolitical and supply-chain exposure
Data-center components and third-party services may be affected by trade or conflict.
- Scope
- Infrastructure sourcing, service continuity
- Materiality
- medium
Revenue recognition over contract life
Deferred revenue, quarterly revenue timing
Deferred revenue and billings
Short-term and long-term deferred revenue
Legal accruals and contingencies
Operating expenses and liabilities
Acquisition and investment valuation
Intangible assets, goodwill, future impairment risk
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: 29/04/2026