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Zoom Video expects fourth-quarter fiscal 2024 revenues in the range of $1.125-$1.13 billion. The Zacks Consensus Estimate for the top line is currently pegged at $1.13 billion, indicating growth of 0.98% from the year-ago quarter.
Non-GAAP earnings are expected in the range of $1.13-$1.15 per share. The consensus mark for earnings has remained steady at $1.15 per share over the past 30 days, indicating a decline of 0.93% year over year.
Zoom Video Communications, Inc. Price and EPS Surprise
The company's fiscal fourth-quarter performance is likely to have benefited from sustained demand for its products, such as Zoom Video Webinars, Zoom Rooms and Zoom Phones. The company's increasing range of solutions is likely to have contributed to customer growth during the quarter under review.
The availability of Zoom Clips, which allows users to easily record, edit and share high-fidelity short-form video messages, both internally and externally, is likely to have aided enterprise customer growth in the to-be-reported quarter.
The company also announced the launch of a new app designed for Apple Vision Pro, which provides users with a native experience for meetings, giving them exceptional audio and video quality, as well as the ability to easily start, join, collaborate and schedule meetings.
The consensus estimate for enterprise customers in the fiscal fourth quarter is currently pegged at 222,590.
The company’s freemium business model helps it win customers rapidly, whom it can later convert into paying customers. In the fiscal third quarter, customers contributing more than $100,000 in revenues in the trailing 12 months grew 13.5% to 3,731. These customers accounted for 29% of revenues, up from 27% in the year-ago quarter. The momentum is expected to have continued in the to-be-reported quarter.
The Zacks Consensus Estimate for customers contributing more than $100,000 in revenues in the fiscal fourth quarter is currently pegged at 3,879.
The company’s artificial intelligence (AI) related advancements and partnerships in the fiscal fourth quarter are noteworthy. ZM adopts a federated approach to AI, utilizing its own exclusive large-language AI models as well as models from renowned AI companies like OpenAI and Anthropic.
In the to-be-reported quarter, the company announced new features across its AI-powered customer experience suite and new pricing plans, which are expected to have been major growth drivers. Zoom Contact Center is now available in new tiered plans that have voice, video, chat and Short Message Service channels, real-time transcription, remote control, Agent Computer-Telephony Integration, surveys and AI Companion capabilities, including summarization.
However, the company has been facing significant competition from the likes of Cisco, Microsoft and Google Meet. This might have led to a loss in small and medium-sized business customers, which is likely to have hurt top-line growth.
International expansion has been causing cost escalations in the form of development expenses. Research and Development expenses jumped 2% year over year to $105.7 million in the third quarter of fiscal 2024. This trend is likely to have continued in the fiscal fourth quarter as the company plans to add local sales support in international markets.
What Our Model Unveils
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
ZM has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’ earnings is pinned at 19 cents per share. The company had incurred a loss of 75 cents per share in the year-ago quarter.
Eldorado Gold (EGO - Free Report) has an Earnings ESP of +5.88% and a Zacks Rank #2 at present.
Eldorado Gold is set to announce fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for EGO’s earnings is pinned at 21 cents per share, indicating growth of 50% from the year-ago quarter’s figure.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank #3 at present.
Booking Holdings is scheduled to release fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for BKNG’s earnings is pegged at $29.69 per share, suggesting a jump of 20% from the prior-year quarter.
Image: Bigstock
Zoom Video (ZM) to Report Q4 Earnings: What's in the Cards?
Zoom Video Communications (ZM - Free Report) is slated to release fourth-quarter fiscal 2024 results on Feb 26.
Zoom Video expects fourth-quarter fiscal 2024 revenues in the range of $1.125-$1.13 billion. The Zacks Consensus Estimate for the top line is currently pegged at $1.13 billion, indicating growth of 0.98% from the year-ago quarter.
Non-GAAP earnings are expected in the range of $1.13-$1.15 per share. The consensus mark for earnings has remained steady at $1.15 per share over the past 30 days, indicating a decline of 0.93% year over year.
Zoom Video Communications, Inc. Price and EPS Surprise
Zoom Video Communications, Inc. price-eps-surprise | Zoom Video Communications, Inc. Quote
Factors to Note
The company's fiscal fourth-quarter performance is likely to have benefited from sustained demand for its products, such as Zoom Video Webinars, Zoom Rooms and Zoom Phones. The company's increasing range of solutions is likely to have contributed to customer growth during the quarter under review.
The availability of Zoom Clips, which allows users to easily record, edit and share high-fidelity short-form video messages, both internally and externally, is likely to have aided enterprise customer growth in the to-be-reported quarter.
The company also announced the launch of a new app designed for Apple Vision Pro, which provides users with a native experience for meetings, giving them exceptional audio and video quality, as well as the ability to easily start, join, collaborate and schedule meetings.
The consensus estimate for enterprise customers in the fiscal fourth quarter is currently pegged at 222,590.
The company’s freemium business model helps it win customers rapidly, whom it can later convert into paying customers. In the fiscal third quarter, customers contributing more than $100,000 in revenues in the trailing 12 months grew 13.5% to 3,731. These customers accounted for 29% of revenues, up from 27% in the year-ago quarter. The momentum is expected to have continued in the to-be-reported quarter.
The Zacks Consensus Estimate for customers contributing more than $100,000 in revenues in the fiscal fourth quarter is currently pegged at 3,879.
The company’s artificial intelligence (AI) related advancements and partnerships in the fiscal fourth quarter are noteworthy. ZM adopts a federated approach to AI, utilizing its own exclusive large-language AI models as well as models from renowned AI companies like OpenAI and Anthropic.
In the to-be-reported quarter, the company announced new features across its AI-powered customer experience suite and new pricing plans, which are expected to have been major growth drivers. Zoom Contact Center is now available in new tiered plans that have voice, video, chat and Short Message Service channels, real-time transcription, remote control, Agent Computer-Telephony Integration, surveys and AI Companion capabilities, including summarization.
However, the company has been facing significant competition from the likes of Cisco, Microsoft and Google Meet. This might have led to a loss in small and medium-sized business customers, which is likely to have hurt top-line growth.
International expansion has been causing cost escalations in the form of development expenses. Research and Development expenses jumped 2% year over year to $105.7 million in the third quarter of fiscal 2024. This trend is likely to have continued in the fiscal fourth quarter as the company plans to add local sales support in international markets.
What Our Model Unveils
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
ZM has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
The Gap (GPS - Free Report) has an Earnings ESP of +24.44% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’ earnings is pinned at 19 cents per share. The company had incurred a loss of 75 cents per share in the year-ago quarter.
Eldorado Gold (EGO - Free Report) has an Earnings ESP of +5.88% and a Zacks Rank #2 at present.
Eldorado Gold is set to announce fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for EGO’s earnings is pinned at 21 cents per share, indicating growth of 50% from the year-ago quarter’s figure.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank #3 at present.
Booking Holdings is scheduled to release fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for BKNG’s earnings is pegged at $29.69 per share, suggesting a jump of 20% from the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.