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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 slated to release fourth-quarter fiscal 2023 results on Feb 27.
Zoom expects fourth-quarter fiscal 2023 revenues in the range of $1.095-$1.1105 billion, which at the midpoint represent roughly 3% year-over-year growth or 5% in constant currency. The Zacks Consensus Estimate for the top line is currently pegged at $1.10 billion, indicating growth of 2.67% from the year-ago quarter.
Non-GAAP earnings are expected in the range of 75 cents to 78 cents per share. The consensus mark for earnings has remained steady at 79 cents per share over the past 30 days, indicating a decline of 38.7% year over year.
Zoom Video Communications, Inc. Price and EPS Surprise
Zoom’s fourth-quarter performance is likely to have gained from steady demand for varied products like Zoom Video Webinars, Zoom Rooms and Zoom Phones. An expanding portfolio of solutions is expected to have aided customer growth in the fiscal fourth quarter.
The launch of Zoom IQ for Sales, a conversation intelligence solution designed for the Zoom platform, is expected to have been a key growth driver. By analyzing data from sales conversations, this AI solution provides critical insights sales leaders can use to develop their teams, enhance their customers’ experience and make more informed decisions in the future.
The launch of the Zoom Events in India is expected to have attracted users in the to-be-reported quarter. Zoom Events’ built-in tools promote networking and enable real-time feedback, so attendees can enjoy the same benefits of in-person events while at home.
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 31% to 3,286. These customers accounted for 27% of revenues, up from 22% in the year-ago quarter. The momentum is expected to have continued in the to-be-reported quarter.
On Dec 13, Zoom announced that more than 1 million users around the globe have the Zoom Learning Center, a free educational platform that comes with 75+ on-demand courses spanning Zoom’s suite of products, over 6 hours of video content, 16 learnings plans and a personalized dashboard.
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.
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.
Zoom has an Earnings ESP of -1.58% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:
Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, unchanged over the past 60 days.
Splunk has an Earnings ESP of +0.39% and a Zacks Rank #2 at present.
Splunk is scheduled to release its fiscal fourth-quarter 2023 results on Mar 1. The Zacks Consensus Estimate for SPLK’s earnings has moved north by 0.9% to $1.11 per share in the past 60 days.
Salesforce (CRM - Free Report) has an Earnings ESP of +0.32% and a Zacks Rank #2 at present.
Salesforce is scheduled to release its fiscal fourth-quarter 2023 results on Mar 1. The Zacks Consensus Estimate for CRM’s earnings has been stable at $1.36 per share in the past 60 days.
Image: Shutterstock
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 2023 results on Feb 27.
Zoom expects fourth-quarter fiscal 2023 revenues in the range of $1.095-$1.1105 billion, which at the midpoint represent roughly 3% year-over-year growth or 5% in constant currency. The Zacks Consensus Estimate for the top line is currently pegged at $1.10 billion, indicating growth of 2.67% from the year-ago quarter.
Non-GAAP earnings are expected in the range of 75 cents to 78 cents per share. The consensus mark for earnings has remained steady at 79 cents per share over the past 30 days, indicating a decline of 38.7% 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
Zoom’s fourth-quarter performance is likely to have gained from steady demand for varied products like Zoom Video Webinars, Zoom Rooms and Zoom Phones. An expanding portfolio of solutions is expected to have aided customer growth in the fiscal fourth quarter.
The launch of Zoom IQ for Sales, a conversation intelligence solution designed for the Zoom platform, is expected to have been a key growth driver. By analyzing data from sales conversations, this AI solution provides critical insights sales leaders can use to develop their teams, enhance their customers’ experience and make more informed decisions in the future.
The launch of the Zoom Events in India is expected to have attracted users in the to-be-reported quarter. Zoom Events’ built-in tools promote networking and enable real-time feedback, so attendees can enjoy the same benefits of in-person events while at home.
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 31% to 3,286. These customers accounted for 27% of revenues, up from 22% in the year-ago quarter. The momentum is expected to have continued in the to-be-reported quarter.
On Dec 13, Zoom announced that more than 1 million users around the globe have the Zoom Learning Center, a free educational platform that comes with 75+ on-demand courses spanning Zoom’s suite of products, over 6 hours of video content, 16 learnings plans and a personalized dashboard.
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.
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.
Zoom has an Earnings ESP of -1.58% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:
Grid Dynamics (GDYN - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, unchanged over the past 60 days.
Splunk has an Earnings ESP of +0.39% and a Zacks Rank #2 at present.
Splunk is scheduled to release its fiscal fourth-quarter 2023 results on Mar 1. The Zacks Consensus Estimate for SPLK’s earnings has moved north by 0.9% to $1.11 per share in the past 60 days.
Salesforce (CRM - Free Report) has an Earnings ESP of +0.32% and a Zacks Rank #2 at present.
Salesforce is scheduled to release its fiscal fourth-quarter 2023 results on Mar 1. The Zacks Consensus Estimate for CRM’s earnings has been stable at $1.36 per share in the past 60 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.