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Zoom Video expects first-quarter fiscal 2025 revenues to be $1.125 billion. The Zacks Consensus Estimate for the top line is currently pegged at $1.13 billion, indicating growth of 1.81% from the year-ago quarter.
Non-GAAP earnings are expected in the range of $1.18-$2 per share. The consensus mark for earnings has remained steady at $1.19 per share over the past 30 days, indicating growth of 2.59% year over year.
Zoom Video Communications, Inc. Price and EPS Surprise
The company's fiscal first-quarter performance is likely to have benefited from sustained demand for its products, such as Zoom Video Webinars, Zoom Rooms and Zoom Phones. ZM's increasing range of solutions is expected to have contributed to customer growth.
In the fiscal first quarter, ZM announced the launch of its Compliance Manager solution, an all-in-one offering that provides archiving, eDiscovery, legal hold and information protection capabilities to help organizations fulfill regulatory requirements and mitigate organizational communications compliance risks across the Zoom platform. This is expected to have boosted adoption of the company’s solution among enterprise customers.
The company also announced the general availability of Swoogo’s hybrid events offering on the Zoom App Marketplace. This offering brings together Zoom Event’s virtual platform and Swoogo’s in-person event management technology to empower event organizers to reach broader audiences.
The consensus estimate for enterprise customers in the fiscal first quarter is currently pegged at 223,328.
Zoom Video’s freemium business model helps it win customers rapidly, whom it can later convert into paying customers. In the fiscal fourth quarter, customers contributing more than $100,000 in revenues in the trailing 12 months grew 9.8% to 3,810. These customers accounted for 30% of revenues, up from 28% reported 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 is currently pegged at 3,957.
The company’s artificial intelligence (AI) related advancements and partnerships in the fiscal first 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, Zoom Video expanded language support and a new capability for AI Companion to help multilingual teams collaborate and communicate more effectively across the company's platform.
However, ZM 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. This trend is likely to have continued in the to-be-reported 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 carries 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 stocks that, according to our model, have the right combination of elements to beat on earnings this season.
NVIDIA is scheduled to release first-quarter fiscal 2025 results on May 22. The Zacks Consensus Estimate for NVDA’s earnings is pegged at $5.49 per share, suggesting a significant jump from the prior-year quarter’s reported figure of $1.09.
Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +5.10% and carries a Zacks Rank #2 at present.
Abercrombie & Fitch is set to report first-quarter 2024 results on May 29. The Zacks Consensus Estimate for ANF’s earnings is pegged at $1.54 per share, indicating a significant jump from the year-ago quarter’s reported figure of 39 cents.
Agilent Technologies (A - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank #3 at present.
Agilent Technologies is set to report second-quarter fiscal 2024 results on May 29. The Zacks Consensus Estimate for A’s earnings is pegged at $1.19 per share.
Image: Bigstock
Zoom Video (ZM) to Report Q1 Earnings: What's in the Cards?
Zoom Video Communications (ZM - Free Report) is slated to release first-quarter fiscal 2025 results on May 20.
Zoom Video expects first-quarter fiscal 2025 revenues to be $1.125 billion. The Zacks Consensus Estimate for the top line is currently pegged at $1.13 billion, indicating growth of 1.81% from the year-ago quarter.
Non-GAAP earnings are expected in the range of $1.18-$2 per share. The consensus mark for earnings has remained steady at $1.19 per share over the past 30 days, indicating growth of 2.59% 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 first-quarter performance is likely to have benefited from sustained demand for its products, such as Zoom Video Webinars, Zoom Rooms and Zoom Phones. ZM's increasing range of solutions is expected to have contributed to customer growth.
In the fiscal first quarter, ZM announced the launch of its Compliance Manager solution, an all-in-one offering that provides archiving, eDiscovery, legal hold and information protection capabilities to help organizations fulfill regulatory requirements and mitigate organizational communications compliance risks across the Zoom platform. This is expected to have boosted adoption of the company’s solution among enterprise customers.
The company also announced the general availability of Swoogo’s hybrid events offering on the Zoom App Marketplace. This offering brings together Zoom Event’s virtual platform and Swoogo’s in-person event management technology to empower event organizers to reach broader audiences.
The consensus estimate for enterprise customers in the fiscal first quarter is currently pegged at 223,328.
Zoom Video’s freemium business model helps it win customers rapidly, whom it can later convert into paying customers. In the fiscal fourth quarter, customers contributing more than $100,000 in revenues in the trailing 12 months grew 9.8% to 3,810. These customers accounted for 30% of revenues, up from 28% reported 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 is currently pegged at 3,957.
The company’s artificial intelligence (AI) related advancements and partnerships in the fiscal first 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, Zoom Video expanded language support and a new capability for AI Companion to help multilingual teams collaborate and communicate more effectively across the company's platform.
However, ZM 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. This trend is likely to have continued in the to-be-reported 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 carries 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 stocks that, according to our model, have the right combination of elements to beat on earnings this season.
NVIDIA (NVDA - Free Report) has an Earnings ESP of +2.90% and carries a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
NVIDIA is scheduled to release first-quarter fiscal 2025 results on May 22. The Zacks Consensus Estimate for NVDA’s earnings is pegged at $5.49 per share, suggesting a significant jump from the prior-year quarter’s reported figure of $1.09.
Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +5.10% and carries a Zacks Rank #2 at present.
Abercrombie & Fitch is set to report first-quarter 2024 results on May 29. The Zacks Consensus Estimate for ANF’s earnings is pegged at $1.54 per share, indicating a significant jump from the year-ago quarter’s reported figure of 39 cents.
Agilent Technologies (A - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank #3 at present.
Agilent Technologies is set to report second-quarter fiscal 2024 results on May 29. The Zacks Consensus Estimate for A’s earnings is pegged at $1.19 per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.