Company Performance - Zoom Communications' stock increased by 1.54% to $72.06, outperforming the S&P 500's gain of 1.47% on the same day [1] - Over the past month, Zoom's shares declined by 9.68%, underperforming the Computer and Technology sector's gain of 3.41% and the S&P 500's gain of 0.64% [1] Upcoming Earnings Report - The company is set to release its earnings report on August 21, 2025, with an expected EPS of $1.37, reflecting a 1.44% decrease from the same quarter last year [2] - Quarterly revenue is anticipated to be $1.2 billion, which is a 3.02% increase compared to the previous year [2] Full Year Estimates - For the full year, earnings are projected at $5.59 per share and revenue at $4.81 billion, indicating increases of 0.9% and 2.99% respectively from the prior year [3] Analyst Estimates and Confidence - Recent adjustments to analyst estimates for Zoom Communications are being monitored, as they often indicate changing business trends [4] - Positive revisions in estimates suggest analysts' confidence in the company's performance and profit potential [4] Zacks Rank and Valuation - Zoom Communications currently holds a Zacks Rank of 2 (Buy), with the consensus EPS estimate remaining unchanged over the last 30 days [6] - The company is trading at a Forward P/E ratio of 12.7, which is below the industry average of 27.5 [7] - Zoom's PEG ratio stands at 6.72, compared to the industry average PEG ratio of 2.23 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 79, placing it in the top 32% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1 - Zoom Communications, Inc. will release its financial results for Q2 of fiscal year 2026 on August 21, 2025, after market close [1] - A live Zoom Webinar for the financial results will be accessible at 2:00 pm PT / 5:00 pm ET through Zoom's investor relations website [1] - A replay of the event will be available approximately two hours after the live event concludes [1] Group 2 - Zoom's mission is to provide an AI-first work platform for human connection, emphasizing productivity through its open collaboration platform, Zoom Workplace [2] - Zoom's Business Services, including Zoom Contact Center, aim to strengthen customer relationships throughout the customer lifecycle [2] - Founded in 2011, Zoom is publicly traded on NASDAQ under the ticker ZM and is headquartered in San Jose, California [2]

Company Performance - Zoom Communications shares decreased by 1.17% to $74.51, underperforming the S&P 500's daily loss of 0.3% and the tech-heavy Nasdaq's decline of 0.38% [1] - Over the past month, Zoom's shares have depreciated by 3.32%, contrasting with the Computer and Technology sector's gain of 4.85% and the S&P 500's gain of 3.64% [1] Earnings Forecast - The upcoming earnings report is expected to show an EPS of $1.37, reflecting a 1.44% decline compared to the same quarter last year [2] - Revenue is projected at $1.2 billion, indicating a 3.02% increase from the equivalent quarter last year [2] - For the full year, earnings are estimated at $5.59 per share and revenue at $4.81 billion, showing changes of +0.9% and +2.99% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Zoom Communications are crucial as they reflect short-term business trends [4] - Positive estimate revisions are seen as a sign of optimism regarding the business outlook [4] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Zoom Communications at 2 (Buy) [6] - The Forward P/E ratio for Zoom is 13.49, which is a discount compared to the industry average of 29.27 [7] - The PEG ratio for Zoom is 7.14, while the average PEG ratio for the Internet - Software industry is 2.21 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - Zoom Communications, Inc. has been recognized as a "leader" in the UCaaS platform space with above-average customer feedback according to Forrester's Q3 2025 report [1][4] Platform Capabilities - Zoom excels in meeting experience, work persistence, and reliability, featuring an integrated AI companion and flexible video layout support [2] - The platform offers a 99.999% uptime SLA for its phone system and supports local backup for video meetings and messaging [2] - Zoom received the highest scores in criteria such as meeting experience, chat intelligence, collaboration organization, and security [2] Strategic Vision for the Future - Zoom aims to enhance collaboration through meaningful connections and is innovating to improve the meetings experience, including AI notetaking linked to work automation [3] - The company scored highest in vision, innovation, and supporting services within its strategic category [3] Customer Feedback - Customers report significant success using the entire Zoom suite, which has helped modernize their processes and collaboration styles [4]

Core Insights - Zoom Communications, Inc. has introduced new agentic AI capabilities through the Custom AI Companion add-on, allowing users to connect to 16 third-party applications to enhance productivity and streamline workflows [1][6][8] Group 1: Product Features - The Custom AI Companion add-on is available for online purchase at $12 per user per month with paid Zoom Workplace plans, enabling small business owners to leverage AI across various video conferencing platforms [9] - Users can connect AI Companion to applications such as ServiceNow, Jira, Asana, and Box, facilitating task completion and intelligent app orchestration without leaving the Zoom platform [6][7] - The add-on includes features like AI-generated meeting summaries, customizable meeting templates, and the ability to create custom avatars for personalized communication [8][11] Group 2: Productivity Enhancements - The integration of AI Companion with third-party apps is designed to improve sales and service outcomes by enabling real-time updates and reducing manual efforts [7] - AI Companion can assist in project management by allowing users to update project statuses and assign tasks directly from Zoom, thus minimizing the need for switching between applications [7] - The tool also supports document collaboration by providing secure access to existing documents and generating new ones based on meeting discussions [7] Group 3: User Experience - The onboarding experience for AI Companion has been improved, making it easier for users to configure settings related to meeting summaries and sharing [12] - Users can query AI Companion for insights before, during, and after calls, enhancing the overall communication experience [12] - AI Companion can summarize documents shared in chat threads, helping users digest information efficiently [12]

Core Insights - Zoom has not experienced the anticipated acceleration in revenue growth, and uncertainties related to tariffs have further complicated the situation [1] - There is a new significant concern emerging for investors regarding Zoom's performance [1] Company Analysis - The company is facing challenges in revenue growth, which has not met expectations [1] - Tariffs have introduced additional uncertainties that negatively impact the company's outlook [1] Investment Perspective - The investing group led by Julian focuses on stocks with a high probability of delivering significant alpha compared to the S&P 500, emphasizing growth-oriented principles alongside strict valuation criteria [1] - Julian Lin, a financial analyst, seeks undervalued companies with long-term growth potential, prioritizing strong balance sheets and management teams [1]

Company Performance - Zoom Communications closed at $78.38, with a daily increase of +1.85%, outperforming the S&P 500's gain of 0.52% [1] - Over the past month, Zoom's shares have decreased by 3.73%, while the Computer and Technology sector and the S&P 500 have increased by 9.55% and 5.95%, respectively [1] Earnings Forecast - The upcoming earnings report is expected to show an EPS of $1.37, reflecting a 1.44% decline from the same quarter last year [2] - Revenue is forecasted to be $1.2 billion, indicating a 3.02% growth compared to the same quarter last year [2] - For the full year, analysts expect earnings of $5.59 per share and revenue of $4.81 billion, representing changes of +0.9% and +2.99% from the previous year [3] Analyst Estimates and Rankings - Recent changes to analyst estimates for Zoom are being monitored, as they reflect short-term business trends [4] - Positive estimate revisions are seen as a sign of optimism regarding the business outlook [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Zoom Communications as 2 (Buy) [6] Valuation Metrics - Zoom Communications has a Forward P/E ratio of 13.78, which is lower than the industry average Forward P/E of 28.26 [7] - The company's PEG ratio stands at 7.39, compared to the Internet - Software industry's average PEG ratio of 2.23 [7] Industry Context - The Internet - Software industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 48, placing it in the top 20% of all industries [8] - The top 50% rated industries are shown to outperform the bottom half by a factor of 2 to 1 [8]

Company Overview - Zoom Communications shares have decreased by approximately 5.6% over the past month, underperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the key drivers affecting the stock [1] Earnings Estimates - Fresh estimates for Zoom have trended upward in the past month, with a consensus estimate shift of 5.67% [2] VGM Scores - Zoom has a strong Growth Score of A, a Momentum Score of B, and a Value Score of C, resulting in an aggregate VGM Score of B [3] Outlook - The upward trend in estimates suggests a promising outlook for Zoom, leading to a Zacks Rank of 2 (Buy) [4] Industry Performance - Zoom is part of the Zacks Internet - Software industry, where Match Group has seen a 2.9% increase in the past month [5] - Match Group reported revenues of $831.18 million for the last quarter, reflecting a year-over-year decline of 3.3% [5] - Match Group's expected earnings for the current quarter are $0.79 per share, indicating a year-over-year increase of 64.6% [6]

That said, if you bought shares of Zoom a year ago, congratulations: You've more than doubled the performance of the S&P 500. As of this writing, Zoom stock is up a nice 27% over the last year, compared to just an 11% return for the market. If you bought shares of communications platform Zoom Video Communications (ZM 1.55%) in 2020, I'm sorry for your poor returns. The stock is down a whopping 86% from the heights it reached in the early days of the COVID-19 pandemic. Some might say I've cherry-picked the t ...

Financial Data and Key Metrics Changes - The company has evolved its mission and refined its strategy to strengthen its value proposition for long-term success [1] - The focus has shifted to an AI-first open work platform, significantly expanding capabilities across communication, collaboration, customer experience, and employee engagement [1][2] Business Line Data and Key Metrics Changes - The company has identified three key strategic priorities: expanding AI capabilities, innovating within Zoom workplace, and scaling growth businesses [2] Market Data and Key Metrics Changes - The company is navigating ongoing macroeconomic pressures while enhancing agility and innovation to deliver value to customers and shareholders [2] Company Strategy and Development Direction - The strategic priorities are guiding the company as it builds upon the progress achieved in FY 2025, focusing on AI and innovation [2] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the company's evolution and commitment to long-term success, emphasizing the importance of innovation and customer value [1][2] Other Important Information - The annual stockholders meeting included the election of directors and the ratification of KPMG as the independent registered public accounting firm for the fiscal year ending January 31, 2026 [14][16] - The compensation of named executive officers was approved on an advisory nonbinding basis [16] Q&A Session Summary Question: Are there any questions pertaining to the proposals? - There were no questions submitted regarding the proposals [15]