Many people have panicked during the stock markets being volatile when the COVID-19 crisis hit. However, I do see this as a very good opportunity to buy really good stocks with strong fundamentals. I will be sharing 1 of the stocks that I am looking at for this crisis.

ZScaler, Inc. (Nasdaq:ZS)

Zscaler is a global cloud-based information security company that provides Internet security, web security, firewalls, sandboxing, SSL inspection, antivirus, vulnerability management and granular control of user activity in cloud computing, mobile and Internet of things environments.

The company was founded in 2008 by Jay Chaudhry, a serial security entrepreneur who previously founded and later sold AirDefense, CipherTrust, CoreHarbor and SecureIT, and Kailash, the former chief architect of NetScaler. The company is unique among the private technology company “unicorns” in being significantly self-funded by the founder himself, is cash-flow neutral, and is on a very fast track of growth year over year. In 2012, Zscaler raised $5 million in venture capital from Lightspeed Venture Partners plus received a strategic investment from EMC Corporation as part of a $38 million expansion round. Zscaler has a reported company valuation of “well north of $1 billion.” On August 3, 2015, Zscaler announced a $100 million pre-IPO fundraising led by TPG Capital Growth. On September 23, 2015, Zscaler announced that the $100 MM round had been oversubscribed and has been raised to $110 million including a $25 million investment from Google Capital.

ZScaler has products in the cybersecurity scene including Zscaler Internet Access, Zscaler Next Generation Firewall and Zscaler Cloud Application Security. These products are well-poised for the growth of the Internet of Things (IoT) era and would likely be one of the key solution for companies that need to digitize. We have seen a big scandal about Zoom’s security (which isn’t their problem because the users have not made sure their devices have the necessary cybersecurity protection). Zscaler is poised to leverage on this to grow its market share.

The best part of Zscaler’s offering is that it is able to integrate across different platforms which the clients are using.

Looking at their financials, we do see high growth in annual recurring revenues and a path to profitability. They have been in net cash position and are already generating positive free cash flows.

In short, I do see Zscaler having the ability to scale fast given their revenue growth of 55+%. Looking forward to sharing more in future.

If you would like me to do a webinar on Zscaler, please comment “YES TO WEBINAR” in the comments section below.

Peace.

Disclaimer: This is not a recommendation to buy/sell any securities. Please do your own due diligence.