Zoom Video Communications Reports Record Earnings and Revenue
May 23, 2023
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The company’s Non-GAAP EPS of $1.16 was $0.17 higher than the expected amount, while revenue of $1.11B exceeded expectations by $30M. Zoom Video Communications ($NASDAQ:ZM)’ products are designed to simplify video communication, allowing users to easily connect with others from any device. The company’s success can be attributed to its focus on providing users with a high-quality video experience. Through innovative features such as high-resolution video, virtual backgrounds, and screen sharing, Zoom Video Communications has become the go-to provider for businesses and individuals looking for a reliable video communication platform. In addition to its core services, the company also offers a variety of add-on features such as recording and streaming capabilities.
The strong financial performance indicates that Zoom Video Communications is well-positioned to continue its growth in the future. As more people continue to rely on video communication to stay connected, Zoom Video Communications is poised to be at the forefront of this trend. With its suite of powerful features and reliable solutions, the company is sure to continue its success in the coming years.
Earnings
The earning report of FY2023 Q4 as of January 31 2023 for Zoom Video Communications shows record-breaking results. Total revenue grew by 4.3% from 882.48M USD to 1117.8M USD in the last three years, a significant jump for the communications company. Zoom Video Communications has attributed their success to their increase in customer acquisition and user engagement.
Despite the decrease in net income, Zoom Video Communications is still successful due to their impressive total revenue. With such impressive growth, investors are optimistic about the future of the company.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ZM. More…
| Total Revenues | Net Income | Net Margin |
| 4.39k | 103.7 | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ZM. More…
| Operations | Investing | Financing |
| 1.29k | -318.32 | -936.94 |
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 |
| 8.13k | 1.92k | 21.12 |
Key Ratios Snapshot
Some of the financial key ratios for ZM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 91.8% | 168.4% | 5.6% |
| FCF Margin | ROE | ROA |
| 26.8% | 2.6% | 1.9% |
Price History
Zoom Video Communications reported record earnings and revenue on Monday as its stock opened at $69.4 and closed at $71.4, up 2.9% from the prior closing price of $69.4. Live Quote…
Analysis
GoodWhale has conducted an analysis of ZOOM VIDEO COMMUNICATIONS’ wellbeing, and found that the company is categorized as a ‘gorilla’, a type of company that is characterized by stable and high revenue or earning growth due to its strong competitive advantage. Investors who may be interested in this kind of company are likely to be those seeking to invest in firms with strong growth potential and significant competitive advantages. Our analysis also found that ZOOM VIDEO COMMUNICATIONS performed strongly in terms of assets, growth and profitability, but relatively weakly in terms of dividends. The company’s health score was found to be 10/10, which indicates its capability to safely ride out any crisis without the risk of bankruptcy, due to its strong cashflows and low debt. More…
Peers
In recent years, the video conferencing market has been growing rapidly with the advent of new technologies. Among the various players in this market, Zoom Video Communications Inc has emerged as a clear leader, with a market share of around 60%.
However, the company faces stiff competition from a number of other players, including Blackbird PLC, ironSource Ltd, and SentinelOne Inc.
– Blackbird PLC ($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
The company reported a Non-GAAP earnings per share (EPS) of $1.16, surpassing the estimated EPS by $0.17. With these results, Zoom Video Communications reaffirmed its position as one of the most successful companies in the video conferencing space. Investors remain bullish on the stock, as its strong growth potential continues to be recognized.
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