Zscaler Inc (NASDAQ:ZS)beat fourth quarter estimates on the top and bottom lines this week, but we would note that its “billings” growth slowed to 32% from 55% in the third quarter.
That left a bit of hole in enthusiasm that was filled, rather dramatically, with sell orders. The stock took a beating, and now it will be interesting to see whether or not this cascade of exit orders has run its course and the valuation multiple starts to rebuild.
Looking a bit deeper, the company guided fiscal 2020 revenue in-line with estimates while the EPS outlook missed expectations. What’s more, the fiscal 2020 revenue guidance implies a fairly significant slowdown in growth (+32% from +59% last year). The in-line revenue guidance is more concerning than the soft EPS guidance as the marginally profitable company remains a growth story. ZS hired a new Chief Revenue Officer, so management may cite go-to-market hiccups, which are common in the software sector. Sales execution would be less concerning than other potential headwinds in a competitive security industry.
Zscaler Inc (NASDAQ:ZS) trumpets itself as a company that operates as a cloud security company worldwide.
The company’s flagship services include Zscaler Internet Access solution that connect users to externally managed applications, including software-as-a-service applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to internally managed applications, either hosted internally in data centers, and private or public clouds.
It serves customers in various industries, such as airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services.
The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.
Zscaler Inc (NASDAQ:ZS) managed to rope in revenues totaling $86.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 53%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($352.7M against $221.6M).
Trulieve Cannabis Corp (OTCMKTS:TCNNF)just announced the hiring of two new members to its leadership team.
According to the release, “Chris Kelly has been named Director of Wholesale for Trulieve. Chris brings over 25 years of consumer packaged goods expertise to Trulieve, with a vast knowledge of go-to-market methods in wholesale, direct store delivery, third-party distribution and broker sales. He also has experience executing customer development and retail channel initiatives. Prior to joining Trulieve, Chris spent eight years in various customer and retail sales leadership positions for The Kellogg Company. Before that, Chris held high-level sales positions with PepsiCo and Diageo, providing strategic and tactical direction to retail field sales execution teams.”
Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.
It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.
The company distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.
According to company materials, “Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.”
“We are pleased to have Chris and Chloe join our team at Trulieve as they bring proven track records of success across a range of industries,” said Kim Rivers, CEO of Trulieve. “This additional strength to our leadership team will be important during this time of rapid growth as we continue to execute on our vision of building a true cannabis brand focused on patients, while delivering profitability to our shareholders.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. TCNNF shares have been moving higher over the past week overall, pushing about 16% to the upside on above average trading volume.
Trulieve Cannabis Corp (OTCMKTS:TCNNF) generated sales of $77.5M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 31.1% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($70.6M against $82.6M, respectively).
Imaging3 Inc (OTCMKTS:IGNG)just hit the scene in the cannabis and CBD space in a big way. We would encourage you to take notice if that’s your kind of new play in the game.
First off, the company frames itself as an imaging name that only happens to have a subsidiary named “Grapefruit”, which is an LA-based cannabis company. The reality is almost certainly that this is a reverse merger underway. And the old “Imaging3 Inc.” is simply no longer the owner of the IGNG ticker.
That sense is certainly what the market is doing as it soars higher on news that Justin Costello accepted appointment as Grapefruit’s initial non-director corporate advisor and the foundation member of its strategic advisory board.
If you have been following the recent performance of Discovery Gold Corp. (OTCPINK: DCGD), then you probably know the name Justin Costello. Mr. Costello is the CEO of DCGD as well as being the CEO and Chairman of GRN Funds, one of the more respected and successful private equity names in the cannabis space.
According to the release, “Pursuant to the terms of the Corporate Advisory Services Agreement between Grapefruit and Mr. Costello, his initial term will be for one year and shall automatically renew for successive six month periods subject to the mutual agreement of the parties. Mr. Costello has agreed to advise Grapefruit on a broad range of matters, from capital formation to mergers and acquisitions. Mr. Costello, 39, is considered to be one of the pioneers of the legal cannabis and CBD industry in the United States. He is CEO and Chairman of GRN Funds, an investment firm based in Seattle, Washington, which he established 2014. GRN Funds provides secure banking resources to small and medium sized businesses throughout the country. Mr. Costello is also the Chairman and CEO of Discovery Gold Corp. (OTCPINK: DCGD). In consideration of accepting his appointment, Mr. Costello will be paid a quarterly honorarium and has been issued four million five hundred thousand restricted shares of the Company’s common stock.”
Imaging3 Inc (OTCMKTS:IGNG) trumpets itself as an overarching structure interested in disruptive business opportunities. One of its most promising segments is Grapefruit, a wholly-owned subsidiary of Imaging3, Inc.
Grapefruit’s corporate headquarters is in Westwood, Los Angeles, California. Grapefruit holds California permits and licenses to both manufacture and distribute cannabis products.
Grapefruit’s cannabis and CBD oil extraction laboratory and distribution facilities are located in the industry recognized Coachillin’ Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Rd., approximately 10 miles north of downtown Palm Springs.
Grapefruit obtained its California cannabis licenses in January 2018 and commenced distribution of cannabis products thereafter. Grapefruit’s vision is to become a seed to sale, fully vertically integrated ethical and compliant cannabis and CBD product Company.
Mr. Costello stated, “I am very flattered and pleased that Brad and Dan Yourist, two very experienced attorneys and cannabis law experts have chosen me to be their initial outside corporate advisor and foundation member of Grapefruit’s strategic advisory board. Brad and Dan’s obvious commitment to compliance with all applicable cannabis laws and regulations matches the commitment of the entities I am associated with and provides the foundation for our decision to work together for the benefit of each other’s enterprises and the legal cannabis, CBD and related enterprises in general. I look forward to a long, mutually beneficial and educational relationship.”
Keep it on the radar.
