Zscaler Announces Record Q2 Operating Results

Sunnyvale, California, July 15, 2010

Zscaler, Inc., the market leader in cloud security, today announced record Q2 operating results.  Bookings, earnings and customers using its cloud security service reached record levels in Q2.

Customers grew 100% over Q1, driven by strong cloud security adoption across the Global 2000, Service Providers, Small & Medium Businesses (SMB), governments and academic institutions.  In Q2, millions of users accessed the Zscaler Security Cloud from over 140 countries.  International bookings represented over 50% of worldwide bookings on the back of record quarters in Europe, Asia Pacific and Latin America.

“We’re in a multi-year cycle of enterprises needing to do more with less.  Globally, companies are quickly realizing that continuing to deploy appliances is impractical, “said Jay Chaudhry, CEO of Zscaler.  “Zscaler’s industry-leading cloud security technology provides enterprises the ability to protect their users while materially reducing cost and complexity.”

Zscaler’s technology resonates across all verticals. Retailers with thousands of store locations have adopted the technology to seamlessly protect employees and manage web access policies centrally, without needing to deploy boxes in each store. A Fortune 100 financial institution abandoned multiple security point products in favor of the integrated Zscaler service to secure users, manage web access, and prevent data loss -- a testament to the reduction in complexity offered by cloud service. The ease of deployment of the Zscaler service was evidenced by all customers, in particular a Fortune 500 service organization with 20,000 employees, which was able to eliminate 18 appliances in a deployment that took less than one week.

The placement of Zscaler as a Visionary by Gartner in its 2010 Magic Quadrant for Secure Web Gateway reinforces the inevitable migration towards cloud delivered security by organizations of all sizes.

About Zscaler

Zscaler is revolutionizing Internet security with the industry’s first Security as a Service platform. As the most innovative firm in the $35 billion security market, Zscaler is used by more than 5,000 leading organizations, including 50 of the Fortune 500. Zscaler ensures that more than 15 million users worldwide are protected against cyber attacks and data breaches while staying fully compliant with corporate and regulatory policies.

Zscaler is a Gartner Magic Quadrant leader for Secure Web Gateways and delivers a safe and productive Internet experience for every user, from any device and from any location — 100% in the cloud. With its multi-tenant, distributed cloud security platform, Zscaler effectively moves security into the internet backbone, operating in more than 100 data centers around the world and enabling organizations to fully leverage the promise of cloud and mobile computing with unparalleled and uncompromising protection and performance. Zscaler delivers unified, carrier-grade internet security, next generation firewall, web security, sandboxing/advanced persistent threat (APT) protection, data loss prevention, SSL inspection, traffic shaping, policy management and threat intelligence—all without the need for on-premise hardware, appliances or software. To learn more, visit us at www.zscaler.com.

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Media Contacts:

Whitney Black 
Director of Communications