Zoom Video Communications ($ZM) Earnings (Q4 FY22)

Zoom Video Communications ($ZM) Earnings Results and Opinion:


Zoom Video Communications ($ZM) is a video communications company that became popular during the pandemic. The workplace shifted to a working from home method and caused Zoom to skyrocket in its growth. However, over the past couple months, with tech stocks taking a huge hit and is currently down around 76% from its all time highs. Follow along as we digest their quarter 4 results and compare them to last years. 


Zoom Revenue and EPS reports:

  • EPS of $1.29 (Non-GAAP) compared to estimates of $1.05.
  • Revenue was reported at $1.071B compared to estimates of $1.05B 
  • EPS was up 6% (YOY) and Revenue was up 21% (YOY)
Zoom is expanding customer base:
  • Customers contributing >100k in TTM revenue was up 66% (YOY)
  • Customers with 10 or more employees grew 9% (YOY)
  • 21% growth in America and 23% growth in ROW
Zoom guidance:
  • Zoom announces a new $1B share buyback program
  • They forecast lower EPS and same revenue for Q1 FY 23

Opinion:
Zoom Video Communications ($ZM) is a stock that I missed out on pre-pandemic. The growth was outrageous from 2020 to 2021. Once it reached its all-time high in October of 2020, it has done nothing but tanked over the past year and a half.  Zoom was one of the Tech stocks that took a huge blow after the apparent Tech Bubble. I think the company is more affordable at this price and is profitable, so if you are okay with some volatility, this could be an investment for you. Personally, I will pass on this opportunity. I see a red flag in slowing growth and want to see them get back to the pandemic growth numbers. I do believe this company is starting to become more steady in terms of customer retention and being profitable. I will keep my eye out on future earnings reports to see how well performance is. 

Comments

Post a Comment

Popular posts from this blog

Costco Wholesale Corporation ($COST) Earnings (Q2 FY22)

  Costco Wholesale Corporation ($COST) Earnings and Opinion: Costco Wholesale Corporation ($COST) is a company in the Consumer Defensive sector and operates in the Discount Stores industry. The company is mainly based out of the United States, but has stores all around the world. Costco was founded in 1976 and is currently headquartered in Issaquah, Washington. The stock was first publicly traded in 1985.  Costco Wholesale Corporation EPS and Revenue (Q2 FY22):  EPS of $2.92 beating expectations of $2.67 Revenue of $51.9B beating expectations of $51.31B  EPS was up  36.45% (YOY) and Revenue was up 15.94% (YOY) Costco Wholesale Corporation Net Income (Q2 FY22): Net Income attributable to Costco was $1.3B  Net Income was up 36.59% (YOY) Opinion: Costco Wholesale Corporation has declined after reporting earnings after the markets closed today. Although they beat EPS and Revenue estimates by a good amount, investors were worried about same-store sales growth sl...
Read more

The Proctor & Gamble Company ($PG) Earnings (Q1 FY23)

  The Proctor & Gamble ($PG) Earnings and Opinion Proctor and Gamble is a company in the Consumer Defensive sector and operates in the Household & Personal Products industry. The company provides branded consumer packaged goods worldwide. Proctor & Gamble was founded in 1837 and is currently headquartered in Cincinnati, Ohio. The company made its debut on the stock market in 1978. Proctor & Gamble Earnings Results: Revenue of $20.61B beating expectations of $20.34B Adj Diluted EPS of $1.57 beating expectations of $1.55 Opinion: Proctor and Gamble is currently moving a slight bit higher in todays trading session. The company reported earnings before the market opened this morning. There wasn't much behind this earnings report, which is the main reason for the lack of direction in the trading session. One credit to the gain has to be the tweak of the view on EPS. They expect it to be pretty flat, compared to the 4% expectation given earlier. The revenue rose in the qu...
Read more

Market Debrief (Thursday March 31, 2022)

 Happy Thursday Stock Talkers! Major indices suffered some major declines on Thursday, which closed out the first quarter of 2022. This was the first quarter that major indices finished down since 2020. A lot of weight on todays trading was based on Biden's announcement to release oil from the reserves to try and mitigate spiking gas prices. His plan consists of releasing 1 million barrels of oil a day starting in May and continuing this trend for 6 months. This will be interesting to see how it pans out, as our president has put the blame on Putin for the rising energy prices and claims we don't have the necessary resources to supply our oil at reasonable prices. In positive news, April has been a historically favorable month for stocks over the past decade and a half. Investors gained some optimism with a 4 day winning streak appearing at the beginning of the week, but two back to back days of losses bring back a fear of volatility in the market. I and all other investors are...
Read more