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. 

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