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Zoom expects second-quarter fiscal 2025 revenues between $1,145 and $1,150 million. The Zacks Consensus Estimate for the top line is currently pegged at $1.15 billion, indicating growth of 0.85% from the year-ago quarter.
Non-GAAP earnings per share are expected in the range of $1.2-$1.21. The consensus mark for earnings has remained steady at $1.21 per share over the past 30 days, indicating a decline of 9.7% year over year.
In the fiscal second quarter, Zoom is likely to have incurred one-time investments to upgrade the data center backbone and expects gross margins to dip to 78%.
Zoom Video Communications, Inc. Price and EPS Surprise
The company's fiscal second-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.
The company’s artificial intelligence (AI) related advancements and partnerships in the fiscal second quarter are noteworthy. ZM announced enhancements of its AI features within the Zoom Workplace, aiming to boost team productivity and collaboration.
The company launched the new Workflow Automation in beta, allowing users to increase efficiency and reduce time spent on routine tasks.
The company also announced the availability of Workvivo for its reseller partners. The employee experience platform is designed to simplify communication and drive engagement for its reseller partners and customers.
These efforts are expected to have boosted the adoption of the company’s solution among enterprise customers. The consensus estimate for enterprise customers in the fiscal second quarter is currently pegged at 193,904.
Zoom Video’s freemium business model helps it win customers rapidly, whom it can later convert into paying customers. In the fiscal first quarter, customers contributing more than $100,000 in revenues in the trailing 12 months grew 8.5% to 3,883. These customers accounted for 30% of revenues, up from 29% 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 3,995.
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 sports a Zacks Rank #1 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.
Abercrombie & Fitch is slated to report its second-quarter 2024 results on Aug 28. The Zacks Consensus Estimate for the company’s earnings is pegged at $2.13 per share, which calls for a significant jump of 93.6% from the prior-year quarter’s reported figure. Shares of ANF have returned 73.5% in the year-to-date period.
Affirm (AFRM - Free Report) has an Earnings ESP of +19.64% and a Zacks Rank #2 at present.
The company is scheduled to release fourth-quarter fiscal 2024 results on Aug 28. The Zacks Consensus Estimate for AFRM’s loss is pegged at 45 cents per share, narrower than the prior-year quarter’s loss of 69 cents. Shares of Affirm have plunged 45.9% in the year-to-date period.
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +4.20% and carries a Zacks Rank #2 at present.
The company is set to report second-quarter fiscal 2024 results on Aug 29. The Zacks Consensus Estimate for AEO’s earnings is pegged at 37 cents per share, which indicates growth of 48% from the year-ago quarter’s reported figure. Shares of American Eagle Outfitters have lost 2.5% in the year-to-date period.
Image: Bigstock
Zoom Video (ZM) to Report Q2 Earnings: What's in the Cards?
Zoom Video Communications (ZM - Free Report) is slated to release second-quarter fiscal 2025 results on Aug 21.
Zoom expects second-quarter fiscal 2025 revenues between $1,145 and $1,150 million. The Zacks Consensus Estimate for the top line is currently pegged at $1.15 billion, indicating growth of 0.85% from the year-ago quarter.
Non-GAAP earnings per share are expected in the range of $1.2-$1.21. The consensus mark for earnings has remained steady at $1.21 per share over the past 30 days, indicating a decline of 9.7% year over year.
In the fiscal second quarter, Zoom is likely to have incurred one-time investments to upgrade the data center backbone and expects gross margins to dip to 78%.
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 second-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.
The company’s artificial intelligence (AI) related advancements and partnerships in the fiscal second quarter are noteworthy. ZM announced enhancements of its AI features within the Zoom Workplace, aiming to boost team productivity and collaboration.
The company launched the new Workflow Automation in beta, allowing users to increase efficiency and reduce time spent on routine tasks.
The company also announced the availability of Workvivo for its reseller partners. The employee experience platform is designed to simplify communication and drive engagement for its reseller partners and customers.
These efforts are expected to have boosted the adoption of the company’s solution among enterprise customers. The consensus estimate for enterprise customers in the fiscal second quarter is currently pegged at 193,904.
Zoom Video’s freemium business model helps it win customers rapidly, whom it can later convert into paying customers. In the fiscal first quarter, customers contributing more than $100,000 in revenues in the trailing 12 months grew 8.5% to 3,883. These customers accounted for 30% of revenues, up from 29% 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 3,995.
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 sports a Zacks Rank #1 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.
Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +5.40% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abercrombie & Fitch is slated to report its second-quarter 2024 results on Aug 28. The Zacks Consensus Estimate for the company’s earnings is pegged at $2.13 per share, which calls for a significant jump of 93.6% from the prior-year quarter’s reported figure. Shares of ANF have returned 73.5% in the year-to-date period.
Affirm (AFRM - Free Report) has an Earnings ESP of +19.64% and a Zacks Rank #2 at present.
The company is scheduled to release fourth-quarter fiscal 2024 results on Aug 28. The Zacks Consensus Estimate for AFRM’s loss is pegged at 45 cents per share, narrower than the prior-year quarter’s loss of 69 cents. Shares of Affirm have plunged 45.9% in the year-to-date period.
American Eagle Outfitters (AEO - Free Report) has an Earnings ESP of +4.20% and carries a Zacks Rank #2 at present.
The company is set to report second-quarter fiscal 2024 results on Aug 29. The Zacks Consensus Estimate for AEO’s earnings is pegged at 37 cents per share, which indicates growth of 48% from the year-ago quarter’s reported figure. Shares of American Eagle Outfitters have lost 2.5% in the year-to-date period.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.