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. If you need any assistance or accommodations due to a medical condition, or if you need assistance accessing our website or completing the application process, please let us know by emailing us at contact information is for accommodation requests only and cannot be used to inquire about the status of applications.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. We welcome people of different backgrounds, experiences, abilities and perspectives including qualified applicants with arrest and conviction records as well as any qualified applicants requiring reasonable accommodations in accordance with the law. Zoom is proud to be an equal opportunity workplace and is an affirmative action employer. To see additional information, please read Zoom’s EEO Policy, Know Your Rights and Pay Transparency Non-Discrimination Provision. To make sure that our products and culture continue to incorporate everyone's perspectives and experience we never discriminate on the basis of race, religion, national origin, gender identity or expression, sexual orientation, age, or marital, veteran, or disability status. We believe that the unique contributions of all Zoomies is the driver of our success.
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