Analysts view Zscaler's Zenith Live 2024 customer conference and investor briefing as a positive for the cybersecurity firm's marketing strategy. Zscaler stock has retreated 16% in 2024 amid stiff competition from Palo Alto Networks and startups Wiz and Netskope.
Zscaler hosted the customer event on Wednesday.
Further, on the stock market today, Zscaler stock dipped more than 3% to 182.50. ZS stock had climbed for seven straight trading sessions prior to Thursday's pullback.
"We came away from Zscaler's user conference more upbeat on the company's go-to-market direction and upsell potential, two areas that have been key debates over the past few quarters," said UBS analyst Roger Boyd in a report. "Chief Revenue Officer Mike Rich provided his vision for upscaling Zscaler's sales org, by shifting from opportunity-based to account-centric selling."
Zscaler Stock: Zero Trust Marketing Focus
San Jose, Calif.-based Zscaler provides cloud-based cybersecurity services via 150 data centers worldwide. Also, Zscaler's web security gateways inspect customers' data traffic for malware.
"We believe the changes in the go-to-market motion towards account-centric selling and 'takeoff' sales teams, under the leadership of new chief revenue officer can drive greater product cross-sell," said Oppenheimer analyst Ittai Kidron in a report.
BMO Capital Markets analyst Keith Bachman said in a report: "Zscaler announced fewer new product innovations this year compared to past years." Bachman added, "And we think the company is focused on integrating and unifying its platform as it expands beyond SASE (Secure Access Service Edge), which we view as a positive."
Zscaler's marketing strategy is built around Zero Trust cybersecurity. Zero Trust cybersecurity models focus on internal and external threats, such as hackers stealing someone's security credentials. With Zero Trust, security firms verify the identity of network users and limit access to applications.
In February, Zscaler's Chief Operating Officer Dali Rajic left to join Wiz in the same role.
Meanwhile, the Zscaler Private Access cloud service replaces virtual private networks to support remote work.
In addition, Zscaler stock belongs to the IBD Computer-Software Security group, which ranks No. 71 out of 197 groups tracked.
Also, ZS stock holds a Relative Strength Rating of only 52 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
