Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Zscaler's Q3 2024 earnings showcased another strong financial performance.</li><li>The company reported a 32% year-over-year growth in revenue with a 30% increase in billings.</li><li>The number of Zscaler customers with an annual recurring revenue (ARR) of over $1 million has increased by 31 percent year over year, and the company now has more than 50 customers with an ARR exceeding $5 million.</li></ul>

Zscaler's Q3 2024 earnings showcased another strong financial performance.The company reported a 32% year-over-year growth in revenue with a 30% increase in billings.The number of Zscaler customers with an annual recurring revenue (ARR) of over $1 million has increased by 31 percent year over year, and the company now has more than 50 customers with an ARR exceeding $5 million.

Zscaler Inc.: Will Its Investments in Innovation and Sales Scaling Pay Off? - Major Drivers

<ul><li>Zscaler's year-year growth in revenue and billings was 35% and 27% respectively, both outpacing guidance even amid a challenging macro environment.</li><li>Other highlights included the doubling of operating profit on a year-year basis, reaching a record margin for Q2, and steady progress on the firm's plan to scale its go-to-market model to achieve its goal of $5 billion and beyond in ARR (Annual Recurring Revenue).</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Zscaler's year-year growth in revenue and billings was 35% and 27% respectively, both outpacing guidance even amid a challenging macro environment.Other highlights included the doubling of operating profit on a year-year basis, reaching a record margin for Q2, and steady progress on the firm's plan to scale its go-to-market model to achieve its goal of $5 billion and beyond in ARR (Annual Recurring Revenue).Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Zscaler Inc.: Is The Robust Demand For Zero Trust Security Changing The Game? - Key Drivers

<ul><li>Zscaler, Inc. managed to exceed analyst expectations in terms of revenue as well as earnings amidst a challenging macro environment.</li><li>Despite the traditionally slower quarter, the company executed well, achieving a significant high for the number of new logo customers with over $1 million in ARR.</li><li>Firstly, there was a notable increase in large new logo wins, with 14 new logos contributing over $1 million ARR.</li></ul>

Zscaler, Inc. managed to exceed analyst expectations in terms of revenue as well as earnings amidst a challenging macro environment.Despite the traditionally slower quarter, the company executed well, achieving a significant high for the number of new logo customers with over $1 million in ARR.Firstly, there was a notable increase in large new logo wins, with 14 new logos contributing over $1 million ARR.

Zscaler Inc.: Mastering AI ML Application Security in Today's World! - Major Drivers

<ul><li>Zscaler managed to surpass the revenue expectations as well as the earnings expectations of Wall Street in Q4, achieving significant growth with a 43% increase in revenue and 38% growth in billings, reflecting balanced expansion across various verticals, customer segments, and geographic regions.</li><li>The full-year results were equally impressive, with revenue reaching 48%, totalling $1.6 billion, and billings rising by 37% to over $2 billion.</li><li>Notably, several records were set, including the addition of the highest number of $1 million ARR customers, record new pipeline generation, and a record operating profit margin.</li></ul>

Zscaler managed to surpass the revenue expectations as well as the earnings expectations of Wall Street in Q4, achieving significant growth with a 43% increase in revenue and 38% growth in billings, reflecting balanced expansion across various verticals, customer segments, and geographic regions.The full-year results were equally impressive, with revenue reaching 48%, totalling $1.6 billion, and billings rising by 37% to over $2 billion.Notably, several records were set, including the addition of the highest number of $1 million ARR customers, record new pipeline generation, and a record operating profit margin.

Zscaler Inc.: Unveiling the Blueprint of Their Growth Strategy! - Major Drivers

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Rubrik, a data security company and leader in cyber-recovery, completed its IPO and sold 23.5M Class A shares to the public at $32.00/share in May.</li>
<li>The technology company reported a mixed quarter pushing shares down over 8% during regular trading session. Q1 FY25 net loss was ~$732M due to massive stock-based comp.</li>
<li>However, subscription ARR increased 46% y/y and cloud ARR jumped 104% y/y indicating continued strength in the company’s Rubrik Security Cloud offering.</li>
</ul>


Rubrik, a data security company and leader in cyber-recovery, completed its IPO and sold 23.5M Class A shares to the public at $32.00/share in May.
The technology company reported a mixed quarter pushing shares down over 8% during regular trading session. Q1 FY25 net loss was ~$732M due to massive stock-based comp.
However, subscription ARR increased 46% y/y and cloud ARR jumped 104% y/y indicating continued strength in the company’s Rubrik Security Cloud offering.


Rubrik: Long Path To Profitability, Massive Stock-Based Comp in Q1 FY25, PT Reduced To $46.00

United States

Zscaler, Inc. operates as a security software company. The Company offers cloud-based platform that provides web and mobile security, threat protection, cloud application visibility, and networking solutions. Zscaler serves clients worldwide.

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Zscaler (ZS US)

Zscaler Inc.: Will Its Investments in Innovation and Sales Scaling Pay Off? - Major Drivers

Zscaler's Q3 2024 earnings showcased another strong financial performance. The company reported a 32% year-over-year growth in revenue with a 30%...

Baptista Research

Zscaler Inc.: Is The Robust Demand For Zero Trust Security Changing The Game? - Key Drivers

Zscaler's year-year growth in revenue and billings was 35% and 27% respectively, both outpacing guidance even amid a challenging macro...

Baptista Research

Zscaler Inc.: Mastering AI ML Application Security in Today's World! - Major Drivers

Zscaler, Inc. managed to exceed analyst expectations in terms of revenue as well as earnings amidst a challenging macro environment. Despite the...

Baptista Research

Zscaler Inc.: Unveiling the Blueprint of Their Growth Strategy! - Major Drivers

Zscaler managed to surpass the revenue expectations as well as the earnings expectations of Wall Street in Q4, achieving significant growth with a...

Baptista Research

Rubrik: Long Path To Profitability, Massive Stock-Based Comp in Q1 FY25, PT Reduced To $46.00

Rubrik stock currently trades below IPO price of $32.00/share. Data security company completed its IPO in May and raised ~$750M. With a recent sell...

Andrei Zakharov

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