Zscaler IPO Gains Even More Hype

March 13, 2018 by Chris Lange

Zscaler has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). This IPO appears to be growing in popularity, as the firm has increased the number of shares it is offering as well as the price. If this is any indication, we might see a nice pop when the company finally enters the market.

The company expects to price its 12 million shares in the range of $13 to $15, with an overallotment option for an additional 1.8 million shares. This is up from the previous range of $10 to $12 per share. At the maximum price, the entire offering is valued up to $207.0 million. The company intends to list its shares on the Nasdaq under the symbol ZS.

The underwriters for the offering are Morgan Stanley, Goldman Sachs, Merrill Lynch, Barclays, Deutsche Bank, Credit Suisse, UBS Investment Bank, Baird, BTIG, Needham and Stephens.

This company is a global cloud-based information security company that provides internet security, web security, next-generation firewalls, sandboxing, Secure Sockets Layer inspection, antivirus, vulnerability management and granular control of user activity in cloud computing, mobile and Internet of Things environments.

Zscaler’s multitenant architecture is distributed across more than 100 data centers globally, which allows it to secure users across 185 countries. Each day, the firm blocks over 100 million threats and performs over 120,000 unique security updates. The firm boasts over 2,800 customers across all major geographies, and it currently counts over 200 of the Forbes Global 2000 as customers.

The firm described its finances in the filing as follows:

For fiscal 2015, 2016 and 2017, revenue was $53.7 million, $80.3 million and $125.7 million, respectively. Our net losses were $12.8 million, $27.4 million and $35.5 million in fiscal 2015, 2016 and 2017, respectively. For the six months ended January 31, 2017 and 2018, our revenue increased from $56.2 million to $84.8 million, representing a period-over-period revenue growth of 51%, while our net loss increased from $14.6 million to $17.9 million. We expect we will continue to incur net losses for the foreseeable future.

The company intends to use the net proceeds from this offering for working capital and general corporate purposes.

Essential Tips for Investing: Sponsored

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.