Zoom Communications shares tumbled nearly 11% before the bell on Tuesday, as its forecast for low single-digit annual revenue growth disappointed investors after a recent rally.
U.S. stock futures were slightly higher this morning, with the Nasdaq futures gaining around 0.1% on Tuesday.
Zoom Video's stock is undervalued, trading at 15x forward free cash flow, with 30% of its market cap in cash and no debt. Despite modest revenue growth, Zoom's strong balance sheet and strategic investments in AI and contact centers support a bullish outlook. Recent earnings report showed slight free cash flow margin compression, yet the company remains financially stable with potential for improved cash flow in fiscal 2026.
Zoom Video Communications Inc. is dropping video from its name in an AI-first rebranding effort. The company, best known for its videoconferencing, will now be known as "Zoom Communications Inc." Zoom isn't the only company revisiting its trajectory in the AI boom.
Zoom Video Communications, Inc. (NASDAQ:ZM ) Q3 2025 Earnings Conference Call November 25, 2024 5:00 PM ET Company Participants Charles Eveslage - Head of Investor Relations Eric Yuan - Founder and Chief Executive Officer Michelle Chang - Chief Financial Officer Conference Call Participants Meta Marshall - Morgan Stanley Kash Rangan - Goldman Sachs Arjun Bhatia - William Blair Patrick Walravens - JMP Securities James Fish - Piper Sandler Alex Zukin - Wolfe Research Siti Panigrahi - Mizuho Allan Verkhovski - Scotiabank Michael Funk - Bank of America Samad Samana - Jefferies Tyler Radke - Citi Mark Murphy - JPMorgan Charles Eveslage Thank you, Kelcey. Hello everyone, and welcome to Zoom's earnings video webinar for the Third Quarter of Fiscal Year 2025.
The headline numbers for Zoom Video (ZM) give insight into how the company performed in the quarter ended October 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Zoom Video Communications (ZM) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.29 per share a year ago.
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Zoom had more profit and revenue than analysts had expected in the quarter, and executives pushed up the company's full-year forecast. The company started selling options for single-use webinars during the quarter.
Videoconferencing platform Zoom Video Communications Inc. on Monday offered up third-quarter results and an outlook that came in above Wall Street's expectations, helped by growth in its key segment geared toward businesses.
Zoom Video (ZM) reported an earnings beat and raised guidance but investors didn't seem sold. Oliver Renick and Caroline Woods break down the report immediately after its release to understand the response.
Amid rising expectations, Zoom Video reported Q3 earnings and revenue that topped estimates as enterprise sales growth beat views. The post Zoom Earnings, Revenue Top Views, Guidance Slightly Above Estimates appeared first on Investor's Business Daily.