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Zoom Video (ZM) to Report Q4 Earnings: What's in the Cards?
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Zoom Video Communications (ZM - Free Report) is set to report fourth-quarter fiscal 2021 results on Mar 1.
For the quarter, the company expects non-GAAP earnings between 77 cents and 79 cents per share. Total revenues are expected between $806 million and $811 million.
The Zacks Consensus Estimate for earnings stayed at 78 cents per share over the past 30 days. The company had reported earnings of 15 cents per share in the year-ago quarter.
The consensus mark for revenues is pegged at $809.1 million, suggesting 329.8% growth from the figure reported in the year-ago quarter.
Zoom’s earnings beat the Zacks Consensus Estimate in all of the past four quarters, the average surprise being 87.7%.
Zoom Video Communications, Inc. Price and EPS Surprise
Let’s see how things have shaped up for this announcement.
Factors to Watch
Zoom’s fiscal fourth-quarter revenues are expected to have benefited from the coronavirus-induced work-from-home and online-learning wave despite the launch of vaccination campaigns.
Notably, the company’s freemium business model helps it win customers rapidly, whom it can later convert into paying customers. Net dollar-expansion rate on a trailing twelve-month basis was more than 130% in third-quarter fiscal 2021. The momentum is expected to have continued in the to-be-reported quarter.
Further, the launch of Zoom For Home, that supports remote working for business professionals, is expected to have driven adoption of the company’s solutions.
Additionally, Zoom’s strong partner base that includes the likes of Atlassian (TEAM - Free Report) , ServiceNow (NOW - Free Report) and Dropbox, is expected to have benefited the company in winning customers in fiscal fourth quarter.
However, Zoom Video continues to face significant competition from the likes of Cisco (CSCO - Free Report) , Microsoft and Google Meet. This might have led to loss in small and medium business customers, which is likely to have hurt top-line growth.
Key Q4 Highlights
On Dec 16, Zoom announced that it will expand its presence in Singapore by opening a new Research and Development Center where it will hire hundreds of key engineering headcount. The company will also expand its co-located data center in the country.
During the to-be-reported quarter, Zoom announced that it has selected Amazon Web Services as its preferred cloud provider.
Moreover, Zoom announced the availability of its new end-to-end encryption (E2EE) to global users, both free and paid, for meetings with up to 200 participants.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Zoom Video (ZM) to Report Q4 Earnings: What's in the Cards?
Zoom Video Communications (ZM - Free Report) is set to report fourth-quarter fiscal 2021 results on Mar 1.
For the quarter, the company expects non-GAAP earnings between 77 cents and 79 cents per share. Total revenues are expected between $806 million and $811 million.
The Zacks Consensus Estimate for earnings stayed at 78 cents per share over the past 30 days. The company had reported earnings of 15 cents per share in the year-ago quarter.
The consensus mark for revenues is pegged at $809.1 million, suggesting 329.8% growth from the figure reported in the year-ago quarter.
Zoom’s earnings beat the Zacks Consensus Estimate in all of the past four quarters, the average surprise being 87.7%.
Zoom Video Communications, Inc. Price and EPS Surprise
Zoom Video Communications, Inc. price-eps-surprise | Zoom Video Communications, Inc. Quote
Let’s see how things have shaped up for this announcement.
Factors to Watch
Zoom’s fiscal fourth-quarter revenues are expected to have benefited from the coronavirus-induced work-from-home and online-learning wave despite the launch of vaccination campaigns.
Notably, the company’s freemium business model helps it win customers rapidly, whom it can later convert into paying customers. Net dollar-expansion rate on a trailing twelve-month basis was more than 130% in third-quarter fiscal 2021. The momentum is expected to have continued in the to-be-reported quarter.
Further, the launch of Zoom For Home, that supports remote working for business professionals, is expected to have driven adoption of the company’s solutions.
Additionally, Zoom’s strong partner base that includes the likes of Atlassian (TEAM - Free Report) , ServiceNow (NOW - Free Report) and Dropbox, is expected to have benefited the company in winning customers in fiscal fourth quarter.
Additionally, this Zacks Rank #2 (Buy) company’s expanding international footprint is a major driver. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, Zoom Video continues to face significant competition from the likes of Cisco (CSCO - Free Report) , Microsoft and Google Meet. This might have led to loss in small and medium business customers, which is likely to have hurt top-line growth.
Key Q4 Highlights
On Dec 16, Zoom announced that it will expand its presence in Singapore by opening a new Research and Development Center where it will hire hundreds of key engineering headcount. The company will also expand its co-located data center in the country.
During the to-be-reported quarter, Zoom announced that it has selected Amazon Web Services as its preferred cloud provider.
Moreover, Zoom announced the availability of its new end-to-end encryption (E2EE) to global users, both free and paid, for meetings with up to 200 participants.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>