Zscaler Inc at Barclays Global Technology Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Saket Kalia - Barclays Services Corp - Analyst : <_ALACRA_META_ABSTRACT>Yeah. So it's -- we've been very lucky since the IPO to have Zscaler at our conference for years, but I think this is the first Barclays Conference where we've had you here as a CFO, hopefully the first of many. Maybe with that said, just tell us a little bit about your background and what attracted you to the opportunity of Zscaler.

Question: Saket Kalia - Barclays Services Corp - Analyst : I totally understand that. Very, very helpful context. I think everybody here in the room is certainly familiar with Zscaler, but just to make sure we're all on the same page, can you just recap some of the points from last quarter that you were particularly proud of?

Question: Saket Kalia - Barclays Services Corp - Analyst : Yeah, absolutely, I totally agree. That 22% organic point is very helpful and it was clear that that was ahead of your internal expectations. I think this is the first full quarter that we had Red Canary as well. Remind us, how did that do versus what you expected?

Question: Saket Kalia - Barclays Services Corp - Analyst : Yeah, absolutely. It was a good start to the year. I want to take that point just on organic growth and a better start with Red Canary and maybe think about what we've said for the fiscal '26 ARR guide. Have we given any guardrails around how much we should think coming from organic? And more importantly, what are some of the fundamental drivers that you think about in terms of underpinning that growth? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 5:50PM, ZS.OQ - Zscaler Inc at Barclays Global Technology Conference

Question: Saket Kalia - Barclays Services Corp - Analyst : That's a great segue. And I really want to talk about sort of the growth differentials between the two. But those three growth pillars, I think are super important. Maybe just, and I want to dive into each one of those individually, but can you just remind us what we've said about the scale and the growth of those businesses collectively?

Question: Saket Kalia - Barclays Services Corp - Analyst : That was a very healthy start to that goal. I want to follow up on that. That was a great summary. And particularly want to dig into kind of the zero trust branch part of that opportunity. That feels like one of the bigger ones as we think about the three things that a customer has to fulfill in order to become a ZTE customer, right? So can you just talk about how you think about the zero trust branch opportunity within the customer base? I mean, should we think about all ZIA customers as candidates for zero trust branch? How do you think about that? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 11, 2025 / 5:50PM, ZS.OQ - Zscaler Inc at Barclays Global Technology Conference

Question: Saket Kalia - Barclays Services Corp - Analyst : That's interesting. And just to put a bow on zero trust everywhere, did you say a 2 times to 3 times uplift? So zero trust users only moving to a zero trust everywhere contract, that's a 2 times to 3 times uplift that we've said? Wow, that's compelling and interesting. Got it. I want to move over to data security everywhere as well and maybe just foundationally, can you just walk us through some of the key modules that are included in that pillar? And similarly, what have you said on kind of size and growth for data security specifically?

Question: Saket Kalia - Barclays Services Corp - Analyst : Yeah, absolutely. I think you answered one of my next questions, which is what gives Zscaler the right to win in that data security space, particularly with all the M&A and sort of the noise that we've seen in kind of the CSPM space in general. And it sounds like by sitting in line, right, with kind of that communication, that's what gives you the right to win there. Is that a fair summary?

Question: Saket Kalia - Barclays Services Corp - Analyst : Absolutely. So we've talked about zero trust everywhere. We've touched on data security everywhere. I'll just kind of wrap up the trifecta here with AI security. Remind us, similar question -- sorry, just to frame everything. What have you said about size and growth there and walk us through some of the more material modules in that part of the business?

Question: Saket Kalia - Barclays Services Corp - Analyst : Interesting. So we've talked about those three pillars. I want to kind of bring it all together. If we think about those growth businesses making up over $1 billion in ARR, this is one of the topics you touched on earlier. I'm curious to hear how you think about the record total $3 billion ARR business. How do you think about the other $2 billion plus in ARR that comes from kind of -- what we call core or maybe those a la carte purchases of ZIA, ZPA and ZDX? It feels like that zero trust sassy market continues to see healthy secular growth. But I guess as we see more customers move to zero trust everywhere, for example, could we see some business shift out of that $2 billion bucket into that $1 billion bucket? How do you think about that sort of dichotomy?

Question: Saket Kalia - Barclays Services Corp - Analyst : Very helpful and maybe that's a good segue into one of the questions I get sometimes is just on the competitive landscape in the zero trust/sassy market. Particularly as we think about some of the firewall vendors, we just had Fortinet here, right? As you think about some of the firewall vendors getting into the sassy space, of course we've got some smaller pure play vendors as well. Listen, I think about this as a rising tide type of market but maybe you can just talk to us a little bit about what do you think in terms of competitive win rates? Do you think this is a rising tide type of market just based on the number of opportunities or how do you think about kind of that competitive landscape and the metrics that you can see?

Question: Saket Kalia - Barclays Services Corp - Analyst : Yeah, super, super helpful context. I want to dig into some financial questions here in the time that we've got left. Kevin, I know that we've talked about sort of investing for growth, which makes a ton of sense given the market opportunity we've talked about. But at the same time, I think we've reached -- really the top end of the long-term margin target that the team gave several years ago, right? I think the range was 20% to 22%. We're close to the top end of that. So, looking forward, maybe I'll ask the question broadly. How do you think about that balance between growth and profitability?

Question: Saket Kalia - Barclays Services Corp - Analyst : I think that's going to be a great event. I can't wait to hear more specifics on it. Maybe just to follow up on it, I think that Jay has anecdotally talked about a path to $5 billion in the ARR, even kind of dangled the $10 billion ARR on the last call. I mean, now that we've shifted the focus metric here to ARR which by the way was great. As we said, we've kind of reached the high end of the long term margin target. I mean, how is Jay sort of thinking about those kind of top line targets because at $3 billion ARR, $5billion doesn't seem that hard anymore for what it's worth. Broad based question, but curious your thoughts.

Question: Saket Kalia - Barclays Services Corp - Analyst : That isn't surprising at all. Maybe one point that I wanted to touch on as part of that -- one of the things that launched this year and I think has done really well is Z-Flex, right? So maybe we could just dig one level deeper into how those contracts are structured and I want to be sure that we talk about, could there be any kind of model impact as that Z-Flex concentration or mix grows that we should know about?

Question: Saket Kalia - Barclays Services Corp - Analyst : Excellent. Well, in the time that we've got left, I want to ask kind of a little bit of a deliberately open-ended question, but as you look at your own internal metrics like pipeline and opportunities and all the fun stuff that you folks get to see, how does this sort of feel in terms of customers' willingness to invest and spend in security in calendar '26, open-ended?

Question: Saket Kalia - Barclays Services Corp - Analyst : Super compelling. Couldn't think of a better way to end there. Kevin, team, thanks so much for the time.