ZM Intrinsic Value Calculator – ZOOM VIDEO COMMUNICATIONS Reports 3.6% Increase in Revenue for FY2024 Q2 with USD 1138.7 Million
August 31, 2023
☀️Earnings Overview
On July 31 2023, ZOOM VIDEO COMMUNICATIONS ($NASDAQ:ZM) reported their earnings results for the second quarter of FY2024 with a total revenue of USD 1138.7 million, an increase of 3.6% from the same quarter of the previous year. Furthermore, their net income was USD 182.0 million, significantly higher than the 45.8 million reported in the same quarter of the year prior.
Analysis – ZM Intrinsic Value Calculator
GoodWhale has conducted an analysis of ZOOM VIDEO COMMUNICATIONS’ wellbeing and determined that their fair value is around $253.4. This figure was calculated using GoodWhale’s proprietary Valuation Line, which analyses various factors such as the company’s potential earnings and future growth prospects. It appears that ZOOM VIDEO COMMUNICATIONS’ current stock price of $67.3 is significantly undervalued, by a whopping 73.4%, based on the fair value estimate. This presents a great opportunity for investors to buy the stock at a significant discount, as it may be undervalued for reasons such as perceived risks within the sector or market sentiment. Thus, it may be a good idea to research the company further to gain a more accurate measure of its potential value and make an informed decision on whether it is an attractive investment opportunity. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ZM. More…
| Total Revenues | Net Income | Net Margin |
| 4.46k | 141.73 | 2.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ZM. More…
| Operations | Investing | Financing |
| 1.26k | -310.11 | -506.66 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ZM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.92k | 1.92k | 23.53 |
Key Ratios Snapshot
Some of the financial key ratios for ZM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 49.1% | -17.4% | 2.8% |
| FCF Margin | ROE | ROA |
| 25.4% | 1.1% | 0.9% |
Peers
In recent years, the video conferencing market has been growing rapidly with the advent of new technologies. Among the various players in this market, Zoom Video Communications Inc has emerged as a clear leader, with a market share of around 60%.
However, the company faces stiff competition from a number of other players, including Blackbird PLC, ironSource Ltd, and SentinelOne Inc.
– Blackbird PLC ($LSE:BIRD)
Blackbird PLC is a 54.22M market cap company with a ROE of -8.0%. The company is engaged in the business of providing technology solutions and services. It offers a range of products and services, including software development, web design, e-commerce, and online marketing. The company has a strong focus on delivering quality products and services to its clients. It has a team of experienced professionals who are committed to providing the best possible solutions to their clients’ needs.
– ironSource Ltd ($NYSE:IS)
IronSource Ltd is a provider of software development tools. The company has a market cap of 3.26B as of 2022 and a return on equity of 4.06%. IronSource Ltd provides tools to enable developers to create, manage, and optimize their applications. The company offers a suite of products that help developers to design, develop, test, and deploy their applications.
– SentinelOne Inc ($NYSE:S)
SentinelOne Inc is a publicly traded cybersecurity company headquartered in Mountain View, California. The company provides endpoint security, network security, and cloud security solutions. As of 2022, the company has a market capitalization of 6.58 billion and a return on equity of -12.5%. The company’s products are used by government agencies and Fortune 500 companies around the world.
Summary
Investors in ZOOM VIDEO COMMUNICATIONS have much to be optimistic about, as the company reported total revenue of USD 1138.7 million for FY2024 Q2, representing a 3.6% increase from the same quarter in the previous year. Net income was also up year-over-year, from USD 45.8 million to USD 182.0 million. This indicates strong business performance and potential for further growth in the future. With these positive financial results, investors can be confident in investing in the company and expect a healthy return on their investment.
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