Slides
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Welcome & Agenda Ashwin Kesireddy, VP, IR & Strategic Finance Zscaler Investor Innovations Briefing - Zenith Live 2025
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Safe Harbor Forward-Looking Statements Unless otherwise noted, all numbers presented will be on an adjusted, non-GAAP basis. Reconciliation of GAAP to non-GAAP financial measures is in the appendix of this presentation. This presentation has been prepared by Zscaler, Inc. (“Zscaler”) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or Zscaler or any officer, director, employee, agent or advisor of Zscaler. This presentation does not purport to be all-inclusive or to contain all of the information you may desire. This presentation contains forward-looking statements. All statements other than statements of historical fact, including statements regarding our future financial and operating performance, including our financial outlook for the fourth quarter of fiscal 2025 and full year fiscal 2025, our planned products and upgrades, business strategy and plans and objectives of management for future operations of Zscaler are forward-looking statements. These statements involve known and a significant number of unknown risks, uncertainties, assumptions and other factors that could cause results to differ materially from statements made in this message, including any performance or achievements expressed or implied by the forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make, including but not limited to the ongoing effects of inflation and geopolitical events on our business, operations and financial results and the economy in general; our limited operating history; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth, including fluctuations from period to period; our limited experience with new product and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the discovery of software bugs; our ability to attract and retain new customers; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support; rapidly evolving technological developments in the market for network security products and subscription and support offerings and our ability to remain competitive; length of sales cycles; and general market, political, economic and business conditions. Additional risks and uncertainties that could affect our financial and operating results are included in our most recent filings with the Securities and Exchange Commission (“SEC”). You can locate these reports though our website at http://ir.zscaler.com or on the SEC website at www.sec.gov. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “continues,” “contemplate,” “could,” “estimate,” “expect,” “explore,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these terms or other similar words. Zscaler based these forward-looking statements largely on its current expectations and projections about future events that it believes may affect its business. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements. All forward-looking statements in this message are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
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Agenda Topics Speakers Welcome and Agenda Ashwin Kesireddy, VP, IR & Strategic Finance Zscaler's Platform Expansion Jay Chaudhry, Founder and CEO AI-Powered SoC Adam Geller, Chief Product Officer Red Canary Agentic AI Brian Beyer, Co-Founder & CEO, Red Canary Break – Lunch served AI Solutions Demo Phil Tee, EVP, Head of AI Innovations Zero Trust Cloud and Customer Q&A Dhawal Sharma, EVP, Product & Products Strategy Zscaler Customer Product Q&A Jay Chaudhry, Adam Geller, Dhawal Sharma, Phil Tee Go-to-market Strategy & Execution Mike Rich, CRO & President of Global Sales Executive Q&A Jay Chaudhry, Mike Rich
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Zscaler’s Platform Expansion Jay Chaudhry, Founder & CEO, Zscaler Zscaler Investor Innovations Briefing - Zenith Live 2025
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New Growth Categories Zero Trust Everywhere All Entities, All Locations Data Security Everywhere Cloud, SaaS, Endpoint Agentic Operations SecOps, IT Ops AI Everywhere
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Any Destination Any Entity Zero Trust Everywhere Zero Trust Exchange Saas Cloud LLMs Internet IoT / OT AI Agents Users Workloads Any Network Broadband, Cellular, Satellite Any Location HQ, Branch, Factory, B 2 B
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Zero Trust Exchange – Secures All Communications Zero Trust Exchange Internet Access Public Apps, SaaS AI Interactions AI Apps/LLMS B2B Collaboration Suppliers, Customers Private App Access Cloud, Colo, DC
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Zero Trust Everywhere Zero Trust AI Agents LLMCloudInternet / SaaS Data Center Zero Trust Workloads Zero Trust Users Zero Trust IoT / OT Zero Trust Exchange
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Endpoints LLMs SaaS IaaS / DC Data Security Everywhere Zero Trust Exchange Real-Time, At-Rest
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Zero Trust Everywhere Zero Trust Everywhere + AI Zero Trust Exchange Saas Cloud LLMs Internet IoT / OT AI Agents Users Workloads AI Data Fabric Agentic Operations IT Ops Automation SecOps Automation
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Task Agents 3rd Party Data Data Sources Agentic AI for SecOps Automation Solutions Orchestration & Automation Zscaler AI Data Fabric: Adds Context and Creates Entity Relationships Exposure Management Threat Management Investigation Agents Policy Agents Data Collection Agents Reporting Agents
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Data Synthesis Zscaler + Third-Party Data Agentic AI Technology Threat & Response Expertise Zscaler AI Data Fabric Accelerating our Vision of an Agentic SOC 500 Trillion Daily Signals Policy Enforcement Zero Trust Exchange Will Transform Threat Management
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Red Canary: Faster Threat Detection and Response Salesforce login anomaly detected – new ISP Legacy SOC Approach (5-10 minute each step) AI Agent Approach (Real time) Compares with historical ISPs Analyzes Geolocation Reviews MFA changes Reviews MFA changes Checks device consistency Analyzes Geolocation Compares with historical ISPs Time to investigate: 30-40 min Time to investigate: 3 min Analyst validates the threat Checks device consistency
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AI-Powered SoC Adam Geller, Chief Product Officer, Zscaler Zscaler Investor Innovations Briefing - Zenith Live 2025
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Security is Only as Strong as its Data 500T+ Signals 250k+ Daily Protection Updates 8B+ Threats Blocked Daily
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Daily Detections, Signals, and Context Zscaler Comprehensive Threat Insights 1.2m Unique Sandbox Files Analyzed 201m Advanced Threats Prevented 10m Malware Caught 5.3m DLP Detections 500k C&C Traffic Dropped 10m Deception Lures
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From Inline Zero Trust to Proactive and Reactive Threat Detection and Response Inline and real-time While bad things are happening (reactive) Before bad things happen (proactive) Zero Trust for all users, applications, devices and location Continuous risk analysis, posture and exposure management Detect, prioritize, investigate and respond to incidents Expanding Our Vision
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Zscaler Platform: Zero Trust Meets AI Zero Trust Everywhere Zero Trust Exchange DC / ColoCloud Internet / SaaS Zero Trust Branch IoT / OT Zero Trust Cloud Workloads Zero Trust Users Workforce, B2B Agentic Operations Security Operations Exposure Management Threat Management Predictive and Generative AI Data Fabric for Security Third-Party Data Policy Enforcement Zscaler Data
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Zscaler Data Third-Party Data Continuous Threat Exposure Management Unified Vulnerability Management Asset Exposure Management Risk360 External Attack Surface Management Data Fabric for Security Deception Identity Protection (ITDR) Future Apps Breach Predictor Threat Management Holistic Security Operations Platform
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Modern Cybersecurity Platform Zero Trust Everywhere Agentic Operations Billions of Data Points Policy Enforcement Data Security Everywhere
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Red Canary Agentic AI Brian Beyer, Co-Founder & CEO, Red Canary Zscaler Investor Innovations Briefing - Zenith Live 2025
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31 trillion+ Telemetry records 66 million+ Red Canary analytic matches 1,109,160 Analyzed events 18,929 Threats identified 15,685 Threats responded to 99.9% reduction 98.3% reduction 98.3% reduction DATA COLLECTION THREAT DETECTION THREAT RESPONSE Note: Represents trailing 90-day data between 07/15/2024 and 10/15/2024 10,460 products integrated 56.8PB data digested 4,070 detection analytics applied 233 Threat hunts performed 12k alerts associated with a Threat 164mm alerts not associated with a Threat 4,575 high severity Threats 14,237 Red Canary unique Threats 71 remediation by Red Canary 20mm playbook actions triggered EXPERT INVESTIGATION For investigation & context 164 million+ Security alerts In 90 days, Red Canary processes 10,000x+ more data than the typical MDR
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Data network effects: Powering a self-reinforcing moat Deliver outcomes More customers Collect data Find potential threats Write tests Write new analytics Investigate results Apply prior learnings / data How others do it 🞬 Static rules with no iteration 🞬 Limited data restricts process improvement 🞬 Insufficient expertise 🞬 Lack of automation stalls progress Trillions of telemetry records
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Red Canary’s agentic AI agents are trained and taught how to be Security Operations experts Trained from the authors of Detection Engineering and the largest set of accurately labeled security operations data Other agents autonomously attempt to complete tasks… …with the success rate of asking a genius IQ toddler to work your SOC Inconsistent, variable quality, but occasionally impressive! “You’re an expert SOC analyst. Investigate this threat!” Red Canary’s agents are imbued with over a decade of training data, SOC expertise, and specific standard operating procedures Consistent, high quality, and proven. “Here are the specific procedures a great SOC analyst follows… Here are the specific procedures an incident responder would follow…. Here are thousands of examples of what a great investigation is… Here are models that are trained with millions of labeled investigations. Go.”
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Lunch Break Zscaler Investor Innovations Briefing - Zenith Live 2025
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AI Solutions Demo Phil Tee, EVP, Head of AI Innovations Zscaler Investor Innovations Briefing - Zenith Live 2025
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Zero Trust Cloud Dhawal Sharma, EVP, Product & Products Strategy Zscaler Investor Innovations Briefing - Zenith Live 2025
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Zero Trust Cloud Secure All Workloads Across All Clouds AWS Azure GCP Data Center Regions Availability Zones VPC VNet Regions Availability Zones Subnet Host
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Standardize security across multi-cloud environments Internet AWS Azure GCP Data Center Secure Workload to Internet Virtual firewalls
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Secure Workload to Workload AWS East AWS West Secure region-to-region3 AzureAWS Secure cloud-to-cloud2 GCP Data Center Secure DC to cloud1 Firewall-free protections Across multi-clouds
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Zscaler VPC Customer VPC Cloud Gateway VPC Workloads Region AWS Service Endpoint Security VPC Load Balancer VPC Cloud Connector Cloud Connector Workloads Region New Deployment Option for Zero Trust Cloud NEW
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Conversation with Zero Trust Cloud customer Zscaler Investor Innovations Briefing - Zenith Live 2025
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Product Q&A Zscaler Investor Innovations Briefing - Zenith Live 2025
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Go-to-market Strategy & Execution Mike Rich, CRO & President of Global Sales Zscaler Investor Innovations Briefing Zenith Live 2025
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Key strategies outlined at Zenith Live 2024 Account-centric selling Stronger GSI Partnerships Increased focus on specific verticals
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Account-centric selling: Strong growth in large customers Q4 FY24 • 7-figure upsell ACV with Fortune 500 financial services company • 7-figure ACV upsell with G2K pharmaceutical company Q1 FY25 • 7 -figure ACV new logo win with a G2K services company • 7-figure ACV upsell deal with Fortune 500 transportation company Q2 FY25 • 7-figure ACV upsell with a G2K manufacturing company • 7-figure ACV upsell deal with a G2K retailer Q3 FY25 • 7-figure ACV upsell deal with a Fortune 50 automotive company • 7-figure ACV upsell deal with a financial services company Delivered strong growth in large customers $5M+ ARR customers >80 $1M+ ARR customers >640 LTM net adds of $5M+ ARR customers 18 28 Q3 LTM FY2024 Q3 LTM FY2025 Acceleration in $5M+ ARR customers
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GSI LTM bookings 1 ~$500M GSI LTM bookings 1 40% Y/Y Y/Y growth in GSI LTM bookings 1 19% 40% Q3 LTM FY2024 Q3 LTM FY2025 Stronger GSI partnerships: Increased impact on large deals Growing GSI contributions over quarters 1. Inclusive of bookings with GSIs as end customers Q4 FY24 • New logo GSI win, representing record TCV in services vertical • 8 of top 10 GSIs by revenue are Zscaler customers Q1 FY25 • 7 -figure ACV new logo win with a G2K aerospace company • 7-figure ACV new logo win with a large US auto supplier Q2 FY25 • 7-figure ACV new logo win with a G2K insurance company • 7-figure ACV upsell deal with a Fortune 500 healthcare company Q3 FY25 • A 7-figure new logo win with a Fortune 100 Food and beverage company • A 7-figure ACV upsell deal with a Global 200 services company Acceleration in GSI bookings 1
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SLED New ACV YTD >35% Y/Y Healthcare New ACV YTD >50% Y/Y SLED New ACV YTD >35% Y/Y Healthcare + SLED + Fed bookings 17% 51% Q3 LTM FY2024 Q3 LTM FY2025 Increased focus on specific verticals: Strong growth in verticals Driving outsized growth in focused verticals Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Acceleration in Focused Verticals • 7-figure ACV new logo deal with a cabinet-level agency • Total cabinet-level agencies landed at 13 of 15 • 7-figure ACV new logo win with a large independent Fed agency • Total cabinet-level agencies landed at 14 of 15 • 8-figure TCV new logo win with a national government, securing the entire government workforce • 7-figure ACV new logo win with a SLED customer • 7-figure ACV upsell deal with US healthcare provider • 7-figure upsell deal with large government agency for ZDX and Data Protection
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Key strengths heading into FY26 Strong leadership and teams across geographies Strong GSI and National Strategic partnerships Large Zscaler platform enables more value realization for customers and partners
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CRO Leadership Ross Tackett SVP, Americas Mike Rich CRO & President, Global Sales Anthony Torsiello SVP, Partner & Alliances Pete Amirkhan SVP, US PubSec & Health Brian Marvin SVP, EMEA Andreas Hartl SVP, APJ • 11 years at ServiceNow • 16+ years at Dell • 12+ years at ServiceNow • 25+ years of experience leading sales organizations • 7 years at Zscaler • 20+ years in sales leadership • 3 years at DocuSign • 20+ years in enterprise sales leadership • 20 years at Microsoft • 20+ years in sales leadership • 10+ years at ServiceNow • 13 years at EMC
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Focus areas and go-to-market priorities for FY26 and beyond Growing New Product Categories Increasing Enterprise Penetration Increasing Channel Leverage ➢ Increase focus on new logo acquisitions ➢ Broader platform sales to drive upsells ➢ Zero Trust Everywhere ➢ Data Security Everywhere ➢ Agentic Operations Cost Take-out ➢ GSIs and Strategic National partners
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Increase enterprise penetration: New logos and upsells New logo opportunities Upsell opportunities Enterprises1 spending <$1M ~3.5K Current Enterprise1 customers Potential Enterprise customers (ex China): >20K 2 Every Enterprise has the potential to be a $1M+ ARR customer 4K+ Current Global 2000 customers Potential Global 2000 customers (ex China): ~1,700 3 >700 G2K customers spending <$1M 400+ Every G2K has the potential to be a $1M+ or $5M+ ARR customer 1. Enterprises are customers with 1,500 or more employees 2. Zscaler estimates of total number of orgs (ex-China) with 1,500+ employees, using the ZoomInfo database 3. Global 2000 ex-China
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Focused execution for new products growth Combined ARR ~$1B growing faster than overall ARR Zero Trust Everywhere Data Security Everywhere Agentic Operations Take-off teams focused on new product areas: 1. “Zero Trust Everywhere” customers are customers that purchased components of Zero Trust Users, Zero Trust Cloud and Zero Trust Branch. 2. Enterprises are customers with 1,500 or more employees. Graph is illustrative, not to scale. Goal: 390+ “Zero Trust Everywhere”1 enterprises2 by FY26 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 FY26E 210+ 130+ 390+
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Increasing Channel Leverage Increasing G2K focus with GSIs Accelerate Cloud Marketplace Increased Investments in Strategic Regional Partners Build Low/No Touch Commercial Engine – Strengthening relationships with public cloud marketplaces – Leveraging hyperscalers’ salesforce in cloud migration projects – Leaning in with key strategic partners and growing dedicated Zscaler resources – Leveraging partners to service smaller customers – Embedding Zscaler in Day 1 of G2K Cloud and Zero Trust transformations
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Driving significant ROI with Cost Take-Out Program $12.8M Network Savings $7.2M Product Savings $3.6M Operational Savings $4.3M Risk Reduction $1.6M Business Agility $29.5M Total Savings over 3 Years – 20K User Company 1 What Zscaler Eliminates DC / COLO N-S, E-W Firewalls, SWG DDoS, LBs, VDI, VPN NAC, VDI, Segmentation Switches, Routers Secure SaaS & Cloud DSPM, SSPM, CASB N-S, E-W Firewalls, SWG DDoS, LBs, VDI, VPN NAC, VDI, Segmentation WAN MPLS, SD-WAN ExpressRoute Direct Connect Network Monitoring Branch / Factory North– South Firewalls East – West Firewalls Segmentation Switches Endpoints VPN, VDI, DLP Endpoint Monitoring SecOps Vuln. Mgmt CAASM 1. Based on internal analysis of customer deployments and outcomes
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Z-Flex: Customer benefits • Flexible consumption: Flexibility to swap modules in-contract • Simplified procurement: no friction as products are added / swapped • Predictable Budget: no retrospective billing • Favorable Pricing: discounts scale with increasing commitments • White-glove deployment and support: best in class support & dedicated deployment experts
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2025 Zscaler, Inc. All rights reserved Z-Flex: Customer case study ARR Fortune 500 Technology customer Before Z-Flex 20 modules added/expanded : After Z-Flex plan Contract Duration 12 modules expanded ~$13M ~$19M ARPU uplift 41% 22%9% 3 years 5 years Data Security (% of ARR) $198 $281 ARR uplift 40% App Protection Deception Workload Protection DP Isolation Encryption/ Classification Cyber Isolation SaaS Security Inline DLP Private Access Internet Access Sandbox Firewall Seats User ARPU Threat Hunting Micro Segmentation ITDR Device Segmentation Zero Trust Branch Endpoint DLP E-mail DLP DSPM 40,00034,000 8 modules added
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Executive Q&A Zscaler Investor Innovations Briefing - Zenith Live 2025