![]() Zoomies help people stay connected so they can get more done together. ![]() ![]() Visit this page for more information about Zoom's Workstyles. These columns are for educational purposes only and should not be considered in any way investment advice.In most cases, you will have the opportunity to choose your preferred working location from the following options when you join Zoom: in-person, hybrid or remote. How much will the learnings we had during the Covid-19 shutdown lead to continued use of video services? I believe we will ultimately find balance, which will mean Zoom is here to stay, but this rate of growth is likely going to slow in the coming quarters.įuturum Research provides industry research and analysis. My biggest questions about the company and its overall strategy will be answered more visibly as the economy starts to return to normal and physical events and business travel resume along with in-person education. This is certainly going to provide some justification to the price of the stock. The long-term guidance is also extremely positive as the company is pushing to double what analysts had expected. While the company has suffered from some challenges that could be expected at this rate of growth, it has largely been able to overcome those challenges and the market has been quite forgiving. I don’t believe there was much question as to what we would see from Zoom in this quarter. Overall Impressions of Zoom Video’s Fiscal Q1 Earnings I expect Zoom to take its massive growth in value and cash flow and invest in these areas to quell any risks. But as Zoom has faced some question marks with its security and support, the growth the company has seen in large enterprise could meet resistance as bigger companies with more resources and more hook into CIOs are able to meet security and support requirements. Zoom has benefitted from being an appliance and its ease of use it well documented. I also think Zoom will continue to see increased competition from the likes of Cisco and Microsoft. It is worth noting that I don’t see the use of Zoom by these organizations fading, but rather some users in this group opting to use the free version of Zoom that offers a good set of features at a great price for small business. As the economy reopens and companies are able to get back to more usual business practices, will these micro companies continue to spend the money on Zoom subscription? This one is going to be an area to watch. But the company did talk about 30% of its revenue coming from small customers with less than 10 employees. The results show this and the adjusted guidance that took analyst estimates of under a billion to over $1.8 Billion for the full year is a clear reflection that the company expects this trajectory to continue through the remainder of its fiscal year. With now more than 265k customers over 10 employees, Zoom has become a staple in businesses of all sizes and this has been the catalyst of growth for the company. The company has seen growth in micro businesses, mid-size companies and has jettisoned to more than 750 customers paying over $100,000 per year for its services. From the moment China was hit, Zoom responded quickly and it was a missile from that moment forward. Zoom has arguably been the darling of Covid-19, if there could be such a thing. For a multi-billion dollar per quarter company, that delta may have seemed understandable, but for a company that delivered $328 Million in the most recent quarter that is a massive beat on revenue–almost to the point that made it surprising that analysts didn’t adjust expectations higher. Read the full news piece on CNBC.Īnalyst Take: Zoom had a blowout quarter, beating revenue by more than $125 Million and doubling analyst EPS estimates. Comparing analysts’ estimates with results is not necessarily straightforward given the presence of a pandemic during the quarter, making it more difficult for analysts to accurately predict how companies will perform. The News: Zoom shares rose as much as 7% before dropping back to baseline after the videoconferencing software company reported major revenue growth during its fiscal first quarter on Tuesday.Īnalysts surveyed by Refinitiv had expected 9 cents in adjusted earnings per share and $202.7 million in revenue for the quarter, which ended Apr.
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