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ZOOM VIDEO COMMUNICATIONS, INC.

(ZM)
  Report
Delayed Nasdaq  -  04:00:00 2023-02-08 pm EST
79.35 USD   -6.27%
02/08Zoom Layoffs Could Boost Operating Margin in 2024 Even as Demand Concerns Linger, Goldman Says
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02/08Zoom Video Communications Poised for Longer Term Growth, Says Goldman Sachs
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02/08World Press Review: February 8
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Zoom shares down 90% from peak as pandemic boom fades

11/22/2022 | 08:54am EST
A 3D printed Zoom logo

(Reuters) - Shares of Zoom Video Communications Inc have tumbled about 90% from their pandemic peak in October 2020 as the former investor darling struggles to adjust to a post-COVID world.

The stock was down 9% in premarket trading on Tuesday after the company cut its annual sales forecast and posted its slowest quarterly growth, prompting at least six brokerages to cut their price targets.

The company, which became a household name during lockdowns due to the popularity of its video-conferencing tools, is trying to reinvent itself by focusing on businesses, with products such as cloud-calling service Zoom Phone and conference-hosting offering Zoom Rooms.

Analysts, however, say any turnaround in the business is still a few quarters away as growth in its mainstay online unit slows and competition from Microsoft Corp's Teams and Cisco's Webex and Salesforce's Slack gets intense.

"Zoom has a fundamental flaw - it has needed to spend heavily to keep hold of market share. Spending to cling onto, rather than grow, market share is never a good place to be and was a sign of trouble ahead," Hargreaves Lansdown equity analyst Sophie Lund-Yates said.

The company's operating expenses surged 56% in the third quarter as it spent more on product development and marketing. Its adjusted operating margin shrank to 34.6% from 39.1% a year earlier.

Some brokerages believe acquisitions could help revive growth at Zoom, but Chief Executive Eric Yuan said on a post-earnings call that he continued to see heightened deal scrutiny for new business.

"The game is not over for them but without acquisitions this is a multi-year path to returning to higher growth," Needham & Co analyst Ryan Koontz said.

(Reporting by Chavi Mehta and Aditya Soni in Bengaluru; Editing by Anil D'Silva)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
HARGREAVES LANSDOWN PLC -0.35% 910.4 Delayed Quote.6.00%
MICROSOFT CORPORATION -0.31% 266.73 Delayed Quote.11.22%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.17% 6.7811 Delayed Quote.-1.85%
ZOOM VIDEO COMMUNICATIONS, INC. -6.27% 79.35 Delayed Quote.24.98%
All news about ZOOM VIDEO COMMUNICATIONS, INC.
02/08Zoom Layoffs Could Boost Operating Margin in 2024 Even as Demand Concerns Linger, Goldm..
MT
02/08Zoom Video Communications Poised for Longer Term Growth, Says Goldman Sachs
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02/08World Press Review: February 8
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02/08RBC Raises Zoom Video Communications' Price Target to $95 From $85, Maintains Outperfor..
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02/08EBay to Reduce Workforce by 5% to Enable Long-Term 'Sustainable Growth'
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02/07Communications Services Up on Risk Appetite -- Communications Services Roundup
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02/07Zoom Video Communications, Inc. : Costs Associated with Exit or Disposal Activities, Chang..
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02/07Zoom Video Communications, Inc. to Reduce its Workforce by Approximately 15%
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02/07Zoom to Eliminate 15% of Workforce to Weather Economic Uncertainty
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02/07Sector Update: Tech Stocks Extend Gains Late Tuesday
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More news
Analyst Recommendations on ZOOM VIDEO COMMUNICATIONS, INC.
More recommendations
Financials (USD)
Sales 2023 4 375 M - -
Net income 2023 187 M - -
Net cash 2023 5 285 M - -
P/E ratio 2023 129x
Yield 2023 -
Capitalization 23 196 M 23 196 M -
EV / Sales 2023 4,09x
EV / Sales 2024 3,71x
Nbr of Employees 8 422
Free-Float 73,5%
Chart ZOOM VIDEO COMMUNICATIONS, INC.
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Zoom Video Communications, Inc. Technical Analysis Chart | MarketScreener
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Technical analysis trends ZOOM VIDEO COMMUNICATIONS, INC.
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 34
Last Close Price 79,35 $
Average target price 85,63 $
Spread / Average Target 7,92%
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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