ZOOM VIDEO COMMUNICATIONS Reports 2.9% Increase in Revenue for Q1 FY2024.

Earnings Overview

On May 22 2023, ZOOM VIDEO COMMUNICATIONS ($NASDAQ:ZM) released their financial reports for the first quarter of FY2024 (ending April 30 2023). Revenue totalled USD 1105.4 million, a 2.9% increase year-on-year. However, net income saw an 86.4% yearly decrease, amounting to USD 15.4 million.

Analysis

GoodWhale has conducted a comprehensive analysis of ZOOM VIDEO COMMUNICATIONS’s fundamentals in order to provide investors with an informed opinion about the company’s investment potential. Through our Risk Rating system, we have determined that ZOOM VIDEO COMMUNICATIONS is a medium risk investment in terms of both financial and business aspects. We have detected two risk warnings in the company’s cashflow statement, which are non-financial in nature. If you would like to gain more insight into our findings, please register with us on our website. We believe this information will help investors to make an informed decision about their investments. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for ZM. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for ZM. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for ZM. More…

Key Ratios Snapshot

Some of the financial key ratios for ZM are shown below. More…

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

ZOOM VIDEO COMMUNICATIONS reported their latest financial results for Q1 FY2024, with total revenue of USD 1105.4 million, representing a 2.9% increase compared to the same quarter a year prior. Net income unfortunately decreased 86.4% year over year to USD 15.4 million. Investors should be aware that the company’s performance has been impacted by the coronavirus pandemic and should factor this into their analysis when considering investing in this stock. Despite the decrease in net income, total revenue is still up 2.9% year over year, representing a potential investment opportunity for those looking to add a tech stock to their portfolio.