Zscaler's Q1 operating margins, billings, and revenue exceeded consensus estimates. Although regarded as a leader in SSE, there is a growing caution regarding its prospects primarily due to its reliance on larger customers while competitors' SASE products are advancing in the lower market segments.

Following Zscaler's recent quarterly report depicting a 'healthy' performance with billings and revenue growth of 13% and 26% respectively, which surpassed Street forecasts, estimations have been adjusted upwards. Despite the 'strong quarter' suggesting positive momentum, concerns remain regarding heightened competition, potential risks to future estimates, and challenges surrounding the execution of new initiatives, which could restrict the stock's performance.

The company's fiscal Q1 results exhibited multiple positive outcomes such as a 30% year-over-year acceleration in bookings, although billings growth was somewhat underwhelming at 13%, against expectations which tended towards the mid-teens. Additionally, the unexpected retirement of CFO Remo Canessa has fueled skepticism regarding the anticipated acceleration in the latter half of the fiscal year. Nonetheless, the company's remarks indicate that recent changes in sales leadership are leading to stability, potentially enhancing the company's ability to market its comprehensive platform solutions.