Stock Analysis: Zoom Video Communications

Stock Analysis: Zoom Video Communications

Zoom Video Communications, Inc.
ZM
$278.24
-0.8657937%
Marketcap
82.67B
Volume
$4,168,329.00
Shares
240,744,992
Range
$275.07 - $281.09
52 Week Range
$273.20 - $588.84
Zoom Video Communications, Inc.
Sector: Technology
Industry: Software—Application
Employees: 5059
Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system that provides secure call routing, call queuing, call detail reports, call recording, call quality monitoring, voicemail, switch to video, and other services, as well as inbound and outbound calling services; and Zoom Chat enables to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices for meeting and phone customers. It also provides Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Video Webinars to provide video presentations to large audiences from many devices; and Zoom Hardware-as-a-Service allows users to access video communication technology with subscription options for phone and meeting room hardware. The company offers Zoom for Developers to integrate its video, phone, chat, and content sharing into other applications, as well as manages Zoom accounts; Zoom App Marketplace enhance developers to publish their apps; OnZoom, a platform for users to create, host, and monetize online events; and Zoom Apps to access from Zoom Meetings and the Zoom Desktop client to facilitate collaboration and engagement during meetings. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.

Zoom shares soared 41% on Tuesday, lifting the videoconferencing software company’s market cap to $129 billion after revenue and earnings blew past analysts’ estimates.

The rally added $37 billion of market value to Zoom, which went public in April 2019 and was worth about $16 billion after its initial day of trading. The company has been perhaps the biggest corporate beneficiary of the coronavirus pandemic, as employers across the globe have turned to the video chat technology to stay connected with staffers, customers and partners. 

Revenue in the period surged 355% to $663.5 million, topping the $500.5 million average estimate of analysts, according to Refinitiv. Adjusted earnings per share of 92 cents more than doubled analysts’ estimates for profit or 45 cents a share. Zoom’s net income for the period was more than triple its profit for the last six quarters combined.

The number of customers producing $100,000 or more in annual revenue for Zoom more than doubled from a year earlier to 988. CEO Eric Yuan highlighted Exxon, Activision and ServiceNow on the earnings call.

Information Collected From CNBC: https://cnb.cx/34ZIPYv