ZOOM VIDEO COMMUNICATIONS, INC.

(ZM)
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Delayed Nasdaq  -  04:00 2022-07-01 pm EDT
110.97 USD   +2.78%
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Zoom raises full-year profit view on strong enterprise demand

05/23/2022 | 04:24pm EDT
FILE PHOTO: Illustration picture of Zoom logo

May 23 (Reuters) - Zoom Video Communications Inc raised its full-year adjusted profit forecast on Monday, betting on robust demand from large businesses in a hybrid work environment, sending shares of the company up 15% in extended trading.

Revenue from Zoom's high-paying enterprise customers jumped 31% in the first quarter, representing 52% of its total revenue, the company said.

"We expect revenue from enterprise customers to become an increasingly higher percentage of total revenue over time," Chief Financial Officer Kelly Steckelberg said in a post-earnings call with analysts.

The company said adjusted operating margin rose 37.2% in the quarter ended April 30 as efforts to expand its enterprise offerings to customer service contact centers, cloud calling and analytics companies paid off.

Zoom had recently announced the acquisition of Solvvy, an AI startup, and launched Zoom IQ, a call analytics tool for sales departments.

For the full year, Zoom forecast adjusted profit per share to be between $3.70 and $3.77, compared with earlier expectations of between $3.45 and $3.51.

However, the company reported revenue rose 12% to $1.07 billion in the first quarter, its slowest growth on record.

Over the past few quarters, demand for the company's platform had slowed as COVID-19 lockdowns eased and competition intensified from Microsoft's Teams and Cisco's WebEx and Google's Meet.

Still, the San-Francisco-based firm reported first-quarter profit that beat expectations and forecast earnings for the current quarter above estimates.

Shares of Zoom, a pandemic darling, have tumbled 85% since they touched a record high in 2020.

(Reporting by Eva Mathews in Bengaluru; Editing by Amy Caren Daniel)


© Reuters 2022
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ZOOM VIDEO COMMUNICATIONS, INC. 2.78% 110.97 Delayed Quote.-39.66%
All news about ZOOM VIDEO COMMUNICATIONS, INC.
06/30S&P 500 ends brutal first half '22 with largest percentage loss since 1970
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06/30Brutal first half of '22 on track to shave $8 trillion off S&P 500
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06/24ZOOM VIDEO COMMUNICATIONS, INC.(NASD : ZM) added to Russell 1000 Value Index
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06/24ZOOM VIDEO COMMUNICATIONS, INC.(NASD : ZM) added to Russell Midcap Index
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06/24ZOOM VIDEO COMMUNICATIONS, INC.(NASD : ZM) dropped from Russell Top 200 Index
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06/24ZOOM VIDEO COMMUNICATIONS, INC.(NASD : ZM) added to Russell 1000 Value-Defensive Index
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06/24ZOOM VIDEO COMMUNICATIONS, INC.(NASD : ZM) added to Russell 3000 Value Index
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06/24ZOOM VIDEO COMMUNICATIONS, INC.(NASD : ZM) dropped from Russell Top 200 Growth Index
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06/24ZOOM VIDEO COMMUNICATIONS, INC.(NASD : ZM) added to Russell Midcap Growth Index
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Financials (USD)
Sales 2023 4 544 M - -
Net income 2023 416 M - -
Net cash 2023 4 162 M - -
P/E ratio 2023 78,9x
Yield 2023 -
Capitalization 33 111 M 33 111 M -
EV / Sales 2023 6,37x
EV / Sales 2024 5,39x
Nbr of Employees 7 155
Free-Float 73,9%
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Technical analysis trends ZOOM VIDEO COMMUNICATIONS, INC.
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Income Statement Evolution
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Mean consensus OUTPERFORM
Number of Analysts 28
Last Close Price 110,97 $
Average target price 124,45 $
Spread / Average Target 12,1%
EPS Revisions
Managers and Directors
Eric S. Yuan Chairman & Chief Executive Officer
Greg Tomb President
Kelly S. Steckelberg Chief Financial Officer
Harry D. Moseley Global Chief Information Officer
Brendan Ittelson Head-Global Customer Support
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