Great question, and one I'm currently thinking about. My main concern is the departure appears sudden, especially after the comments in last quarter's conference call.
First from CEO Jay Chaudhry:
"To enable the next stage of go-to-market scaling. I'm excited to share the appointments of 2 exceptional leaders, Mike Rich, as CRO and President of Global Sales; and Joyce Kim as CMO. They bring a wealth of experience in driving revenue and pipeline growth. Mike joins from ServiceNow, viewed as the President for Americas. He established an efficient and scalable process to drive deeper engagements to large enterprises and to scale their business to over $8 billion in revenue and experience that's critical to the next phase of our growth journey.
Joyce's previous experience includes CMO roles at Twilio, Genesis and ARM with expertise in building high-performance marketing teams and driving impactful marketing strategies and campaigns. With Mike assuming leadership of our sales organization, Dali in his capacity as the COO can focus on scaling our business operations. Dali has been instrumental in establishing the go-to-market process. which has helped Zscaler achieve a milestone of $2 billion in ARR.
With our expanded portfolio of products and experienced CRO and CMO on board we will further scale our value-add sales process for larger platform deals, which will sustain our high growth. I'm thrilled to have strong go-to-market leaders who we believe will drive world-class execution to scale our business beyond $5 billion in ARR."
Then this exchange:
Analyst
"I mean, really impressive set of results, guys. So congrats on the start in the new fiscal year. As you have with you guys have shown very impressive momentum. I guess I wanted to touch on the leadership change. These 2 new executive level hires. How has Dali role changed? Is he still at the firm? Or has he moved on? And if so, how can we expect his decisions to change going forward?"
Jay Chaudhry
"Dali has an active role as the [COO] of the company. He has played a phenomenal role in Zscalers growth you've seen over the past 4 years. He have built a great go-to-market machine that has helped us go past $2 billion in ARR. So Mike's goal is to take up from here to $5 billion and beyond. This frees up Dali to focus more in his capacity as a COO to really help scale our business operations capabilities.
Now what do you mean by that? As we are growing at a rapid pace. We have many things to improve on scaling side up in the operational side, streamlining our post-sale customer engagements. Ranging from support to TAM to deployment, to success. How do you bring them together to make it more productive and better stay in line for better value realization of the customers.
Second example, we do cash process systems, productivity improvement, streamlining. If we do a better job in these areas as a company will become a lot more productive and Dali's experience across the company will help us achieve some of those key things that are needed."
All in all, none of that reads like Dali wasn't expected to remain an integral part of the company. So yes, there's reason to be wary. However, I'm not quite sure how I want to handle it yet.
Hi StockNovice,
I am intrested to know, what do you thing about Zscaler COO leaving the company?
Can you please share with us your thoughts? Is this leaving, makes you rethink about your allocation of Zscaler?
Great question, and one I'm currently thinking about. My main concern is the departure appears sudden, especially after the comments in last quarter's conference call.
First from CEO Jay Chaudhry:
"To enable the next stage of go-to-market scaling. I'm excited to share the appointments of 2 exceptional leaders, Mike Rich, as CRO and President of Global Sales; and Joyce Kim as CMO. They bring a wealth of experience in driving revenue and pipeline growth. Mike joins from ServiceNow, viewed as the President for Americas. He established an efficient and scalable process to drive deeper engagements to large enterprises and to scale their business to over $8 billion in revenue and experience that's critical to the next phase of our growth journey.
Joyce's previous experience includes CMO roles at Twilio, Genesis and ARM with expertise in building high-performance marketing teams and driving impactful marketing strategies and campaigns. With Mike assuming leadership of our sales organization, Dali in his capacity as the COO can focus on scaling our business operations. Dali has been instrumental in establishing the go-to-market process. which has helped Zscaler achieve a milestone of $2 billion in ARR.
With our expanded portfolio of products and experienced CRO and CMO on board we will further scale our value-add sales process for larger platform deals, which will sustain our high growth. I'm thrilled to have strong go-to-market leaders who we believe will drive world-class execution to scale our business beyond $5 billion in ARR."
Then this exchange:
Analyst
"I mean, really impressive set of results, guys. So congrats on the start in the new fiscal year. As you have with you guys have shown very impressive momentum. I guess I wanted to touch on the leadership change. These 2 new executive level hires. How has Dali role changed? Is he still at the firm? Or has he moved on? And if so, how can we expect his decisions to change going forward?"
Jay Chaudhry
"Dali has an active role as the [COO] of the company. He has played a phenomenal role in Zscalers growth you've seen over the past 4 years. He have built a great go-to-market machine that has helped us go past $2 billion in ARR. So Mike's goal is to take up from here to $5 billion and beyond. This frees up Dali to focus more in his capacity as a COO to really help scale our business operations capabilities.
Now what do you mean by that? As we are growing at a rapid pace. We have many things to improve on scaling side up in the operational side, streamlining our post-sale customer engagements. Ranging from support to TAM to deployment, to success. How do you bring them together to make it more productive and better stay in line for better value realization of the customers.
Second example, we do cash process systems, productivity improvement, streamlining. If we do a better job in these areas as a company will become a lot more productive and Dali's experience across the company will help us achieve some of those key things that are needed."
All in all, none of that reads like Dali wasn't expected to remain an integral part of the company. So yes, there's reason to be wary. However, I'm not quite sure how I want to handle it yet.
Would you have any thoughts to add?
Thank you for your detalied reply.
I have only few years of investing, so I have less knowledge than you.
For me this is the first company I own that has this issue, so I am as you dont know how to handle this...The market clrealy doesnt like this.
I will probably reduce me allocation by 50% for this one, and wait for the next earning report.