No. of Recommendations: 67
Here is an article from Seeking Alpha on OTR's downgrade on ZS:

"OTR Global downgrades Zscaler (NASDAQ:ZS) from Mixed to Negative, citing growth that seems to be lagging compared to the overall security market.

The firm says Q4 rates “slightly” weaker and deteriorated for some partners compared to Q3. OTR sees increased competition among Zscaler's channel partners.

ZS will report earnings on September 10. Consensus estimates expect revenue of $82.83M with $0.02 EPS."

Here is the what was discussed in the last earning call with respect the Q4 guidance:

"Please keep in mind that next quarter we'll have a difficult comparison with a large public sector deal that closed in Q4, 2018. This deal added $16.5 million to billings and $26 million the backlog in the July quarter, which will pose a difficult year-over-year comparison in Q4....For the fourth quarter, we expect revenue in the range of $81 million to $83 million, reflecting year-over-year growth of 44% to 48%; operating profit in the range of zero to $2 million; income taxes of $700,000, earnings per share of approximately $0.01 to $0.02, assuming $138 million common shares outstanding.
For the full-year 2019, we expect revenue in the range of $298 million to $300 million or year-over-year growth of 57% to 58%; billings in the range of $379 million to $381 million or year-over-year growth of 47% to 48%; operating profit in the range of $17 million to $19 million; income taxes of $2.2 million; and earnings per share in the range of $0.16 to $0.18, assuming approximately 136 million common shares outstanding."

You see, OTC is just playing the game here by shrewdly reciting what was discussed during the last earning call, without mentioned the details. They achieved their objective of driving some share holders into panic selling.

So, other than a temporary lower stock price, nothing to worry about.
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