News & Analysis
News & Analysis

Zoom tops estimates and raises full-year forecast

21 November 2023 By Klavs Valters

Share

Zoom Video Communications Inc. (NASDAQ: ZM) released its latest financial results for the third fiscal quarter after the market closed in the US on Monday.

Company overview

  • Founded: April 21, 2011
  • Headquarters: San Jose, California, United States
  • Number of employees: 8,484 (January 2023)
  • Industry: Tech
  • Key people: Eric Yuan (Chairman & CEO), Kelly Steckelberg (CFO), Peter Gassner (Director)

The results

The US communications technology company reported revenue that beat Wall Street estimates at $1.136 billion (up by 3.2% year-over-year) vs. $1.119 billion expected.

Earnings per share also topped estimates at $1.29 per share (up by 20.56% year-over-year) vs. $1.086 per share estimate.

The company also raised its full-year revenue forecast: ”Our strong performance across a number of metrics has enabled us to increase our full year outlook for revenue and non-GAAP profitability, as well as for free cash flow, which we now expect to be in the range of $1.34 billion to $1.35 billion, up approximately 13% year over year.”

CEO commentary

“In Q3, revenue came in ahead of guidance as we bolstered Zoom’s all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion and continued to evolve our customer and employee engagement solutions. We are also pleased with our Online business where we drove higher retention and saw usage of our new AI capabilities, enhancing the value of our platform,” Eric Yuan, CEO of Zoom said in a statement.

Stock reaction

The stock was up by 2.93% at $66 a share on Monday, trading at the highest level since 10/10/2023.

Shares were up by around 1% in after-hours trading after the latest results were announced.

Stock performance

  • 1 month: +6.70%
  • 3 months: -3.04%
  • Year-to-date: -3.71%
  • 1 year: -18.73%

Zoom stock price targets

  • Citigroup: $66
  • Rosenblatt: $75
  • RBC Capital: $95
  • Benchmark: $95
  • Stifel: $70
  • HSBC: $83
  • Wedbush: $80
  • JP Morgan: $83
  • Mizuho: $100

Zoom Video Communications Inc. is the 874th largest company in the world with a market cap of $19.62 billion.

You can trade Zoom Video Communications Inc. (NASDAQ: ZM) and many other stocks from the NYSE, NASDAQ, HKEX, ASX, LSE and DE with GO Markets as a Share CFD.

GO Markets now offers pre-market and after-market trading on popular US Share CFDs.

Trade the pre-market session: 4:00am to 9:30am, normal session, and after-market session: 4:00pm to 8:00pm, Eastern Standard Time.

Why trade during extended hours?

  • Volatility never sleeps. Trade over earnings releases as they happen outside of main trading hours
  • Reduce your risk and hedge your existing positions ahead of a new trading day
  • Extended trading hours on popular US stocks means extended opportunities

Sources: Zoom Video Communications Inc., TradingView, MarketWatch, Benzinga, CompaniesMarketCap

The information provided is of general nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information provided, you should consider whether the information is suitable for you and your personal circumstances and if necessary, seek appropriate professional advice. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Past performance is not an indication of future performance. Go Markets Pty Ltd, ABN 85 081 864 039, AFSL 254963 is a CFD issuer, and trading carries significant risks and is not suitable for everyone. You do not own or have any interest in the rights to the underlying assets. You should consider the appropriateness by reviewing our TMD, FSG, PDS and other CFD legal documents to ensure you understand the risks before you invest in CFDs. These documents are available here.