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Zscaler COO Resigns, Stock Falls
Zscaler (ZS) experienced a 4.7% drop in its stock value following the sudden resignation of Chief Operating Officer Dali Rajic. The cybersecurity firm announced this development late Friday, also revealing plans to release its fiscal second-quarter earnings on Feb. 29.
Analyst Reports and Reactions
Analysts expressed surprise at Rajic’s departure, given his recent promotion and successful history with the company. However, some noted that the transition was not unexpected, citing the company’s previous performance in meeting revenue and billings targets.
RBC Capital analyst Matthew Hedberg highlighted the positive outlook on Zscaler but expressed surprise at the swift departure of Rajic without a transition period. Meanwhile, Deutsche Bank analyst Brad Zelnick noted Rajic’s accomplished track record but pointed out the company’s failure to meet internal revenue and billings targets in fiscal 2023.
New Leadership and Market Performance
Zscaler recently welcomed Mike Rich as its new chief revenue officer and Joyce Kim as the chief marketing officer. Rich, previously with ServiceNow, and Kim, from Twilio, join the company as it continues to expand its offerings and market presence.
Despite the recent stock decline, Zscaler had seen a significant 81% climb over the past 52 weeks, with a strong Relative Strength Rating of 98 out of 99, according to IBD Stock Checkup.
Company Overview and Market Position
Zscaler provides cloud-based cybersecurity services through 150 data centers globally, offering web security gateways that inspect data traffic for malware. Additionally, its Zscaler Private Access (ZPA) cloud service aims to replace virtual private networks (VPNs) to support remote work.
Conclusion
The departure of Zscaler’s COO has prompted mixed reactions from analysts and investors, with the company’s market performance and leadership changes under scrutiny. As the cybersecurity firm prepares to release its fiscal second-quarter earnings, all eyes will be on its future strategic direction and ability to meet market expectations.