Core Viewpoint - The upcoming earnings report for Zoom Communications is anticipated to show a decline in earnings per share while revenues are expected to increase slightly year over year [1]. Financial Performance - Quarterly earnings are projected at $1.30 per share, reflecting a decrease of 3.7% compared to the same period last year [1]. - Revenue is forecasted to reach $1.16 billion, indicating a year-over-year increase of 2% [1]. - There has been a downward revision of 0.4% in the consensus EPS estimate over the past 30 days, suggesting analysts have adjusted their projections [2]. Revenue Breakdown - Geographic Revenue from Asia Pacific (APAC) is estimated at $143.01 million, representing a 3.6% increase from the previous year [5]. - Geographic Revenue from Europe, Middle East, and Africa (EMEA) is expected to be $184.58 million, showing a 0.3% increase year over year [5]. - Geographic Revenue from the Americas is projected at $838.48 million, indicating a 2.4% increase from the prior year [6]. Customer Metrics - The number of Enterprise Customers is estimated to be 193,166, up from 191,000 in the same quarter last year [6]. - Customers generating more than $100K in TTM Revenue are expected to reach 4,155, compared to 3,883 in the same quarter of the previous year [7]. Performance Obligations - Current Remaining Performance Obligation (RPO) is projected at $2.33 billion, up from $2.18 billion in the same quarter last year [7]. - Remaining Performance Obligations (RPO) are expected to be $3.86 billion, compared to $3.67 billion in the same quarter last year [8]. - Non-Current Remaining Performance Obligation (RPO) is estimated at $1.51 billion, slightly up from $1.49 billion year over year [8]. Stock Performance - Zoom shares have increased by 17.3% over the past month, outperforming the Zacks S&P 500 composite, which rose by 9.8% [8].

Core Viewpoint - Zoom Communications (ZM) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending April 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for May 21, 2025, with expectations that better-than-expected key numbers could lead to a stock price increase, while missing estimates may result in a decline [2]. - The consensus estimate for quarterly earnings is projected at $1.30 per share, reflecting a year-over-year decrease of 3.7%, while revenues are expected to reach $1.16 billion, marking a 2% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised downwards by 0.41%, indicating a collective reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Zoom is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.68%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [7][8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Zoom exceeded the expected earnings of $1.31 per share by delivering $1.41, resulting in a surprise of +7.63% [12]. - Over the past four quarters, Zoom has consistently beaten consensus EPS estimates [13]. Conclusion - While Zoom does not currently appear to be a strong candidate for an earnings beat, investors are advised to consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Core Insights - The integration of Zoom CX with ServiceNow CRM and IT Service Management aims to create a unified, AI-first solution for customer service and IT support in contact centers [1][2] - This partnership enhances customer experiences by streamlining interactions and providing agents with the necessary tools to resolve issues efficiently [2] Group 1: Integration Benefits - The integration allows agents to manage all interactions—voice, video, and chat—within the ServiceNow platform, eliminating the need to switch between systems [3] - Agents can access real-time CRM data, interaction history, and open cases, enabling them to focus on customer needs [3][4] Group 2: AI and Personalization - The combination of Zoom's AI capabilities with ServiceNow's automation allows organizations to scale support while maintaining a personalized experience [5] - Zoom Virtual Agent provides context-aware responses, while AI Expert Assist offers real-time sentiment analysis and smart note-taking [5][6] Group 3: Collaboration and Resolution - Zoom's collaboration tools within ServiceNow facilitate seamless teamwork, allowing agents to involve the right experts without losing context [7] - This capability helps in resolving customer issues more quickly and effectively [7] Group 4: Availability - The Unified Engagement solution from Zoom CX and ServiceNow is set to be available later this year through the ServiceNow Store [8]

Group 1 - Zoom Communications, Inc. will release its financial results for Q1 of fiscal year 2026 on May 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 teamwork and productivity [2] - Zoom Workplace is an open collaboration platform that includes an AI Companion to enhance team productivity [2] - The company offers Business Services for sales, marketing, and customer experience, including Zoom Contact Center, to strengthen customer relationships [2]

Company Overview - Zoom Communications (ZM) closed at $76.16, with a slight increase of +0.17% from the previous session, outperforming the S&P 500's gain of 0.06% [1] - Over the past month, ZM shares have increased by 1.59%, while the Computer and Technology sector and the S&P 500 have decreased by 5.52% and 4.29%, respectively [1] Earnings Projections - The upcoming earnings release is anticipated, with projected earnings per share (EPS) of $1.30, reflecting a 3.7% decrease year-over-year [2] - Quarterly revenue is expected to be $1.16 billion, which is a 2.03% increase from the same period last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $5.36 per share and revenue at $4.78 billion, indicating a decrease of -3.25% in earnings and an increase of +2.35% in revenue compared to the previous year [3] - Recent changes in analyst estimates indicate a dynamic business trend, with positive revisions suggesting optimism about the company's profitability [3] Stock Performance and Valuation - The Zacks Rank system, which reflects estimate changes, indicates that ZM currently holds a rank of 3 (Hold) [5] - The Forward P/E ratio for Zoom Communications is 14.19, significantly lower than the industry average of 26.08, suggesting that ZM is trading at a discount [6] Industry Comparison - ZM has a PEG ratio of 8.98, compared to the Internet - Software industry's average PEG ratio of 2.19, indicating a higher valuation relative to growth expectations [7] - The Internet - Software industry is ranked 90th in the Zacks Industry Rank, placing it in the top 37% of over 250 industries [7][8]

Group 1 - The tariff situation may enhance Zoom Communications as a compelling investment opportunity due to its resilient subscription revenue model [1] - The company possesses a strong balance sheet, which is advantageous in a market downturn [1] - The investment strategy focuses on identifying undervalued companies with secular growth potential and strong management teams [1] Group 2 - The analyst emphasizes a long position in Zoom Communications, indicating confidence in its future performance [2] - The investment approach combines growth-oriented principles with strict valuation criteria to ensure a margin of safety [1]

Core Insights - Zoom's platform experienced a significant outage on Wednesday afternoon, which has since been resolved [1] - The outage began around 11:40 a.m., with over 59,000 users reporting issues by noon on DownDetector.com [2] - The cause of the outage remains unclear, with speculation pointing to a possible DNS-related issue [3] Company Response - Zoom confirmed that service has been restored and expressed appreciation for user patience [1] - The company directed inquiries to their post on X for further information regarding the outage [3] User Impact - Users faced difficulties logging in and encountered "Unable to Connect" error messages when trying to enter meetings [2] - The outage affected not only the platform but also Zoom's media inquiry inbox [2]

Group 1 - The articles focus on community guidelines aimed at fostering respectful and constructive conversations among users [1][2] - Key rules include prohibitions against false information, spam, and discriminatory comments, ensuring a safe environment for discussions [2] - Users are encouraged to stay on topic and share insights while utilizing tools to report rule violations [2]

Core Insights - Zoom Communications, Inc. has launched Zoom Workplace for Frontline, a mobile-first solution aimed at enhancing communication and work management for frontline workers across various industries [1][2]. Group 1: Product Features - Zoom Workplace for Frontline includes on-shift communications, work management capabilities, and the Zoom AI Companion to facilitate better connectivity and productivity for frontline workers [2][3]. - Key features include a real-time activity feed, auto-generated on-shift chat groups, push-to-talk functionality, shift swapping, task management, shift summaries, automatic shift reporting, smart natural search, and automatic translation [6]. Group 2: Market Positioning - The product is designed to address the needs of frontline workers, who constitute over 80% of the global workforce, thereby expanding Zoom's mission of delivering an AI-first open work platform beyond just knowledge workers [2]. - The solution aims to foster a more engaged, productive, and connected workforce by enabling frontline workers to stay connected and access critical information on the go [2]. Group 3: Company Overview - Zoom was founded in 2011 and is publicly traded on NASDAQ under the ticker ZM, with its headquarters located in San Jose, California [5]. - The company focuses on providing a platform that enhances human connection and teamwork through its open collaboration platform and AI Companion [5].

Company Performance - Zoom Communications closed at $71.98, with a gain of +0.9%, outperforming the S&P 500's gain of 0.79% on the same day [1] - Over the past month, Zoom's shares have decreased by 3.85%, which is less than the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56% [1] Upcoming Earnings - The company is expected to report an EPS of $1.30, reflecting a 3.7% decline compared to the same quarter last year [2] - Revenue is projected to be $1.17 billion, indicating a 2.1% increase from the equivalent quarter last year [2] Full Year Projections - For the full year, earnings are projected at $5.38 per share, representing a -2.89% change from the prior year, while revenue is expected to be $4.79 billion, reflecting a +2.68% change [3] Analyst Estimates - Recent changes to analyst estimates suggest a positive outlook for Zoom Communications, with positive revisions indicating optimism about the company's business prospects [4] - The Zacks Rank system, which reflects these estimate changes, currently ranks Zoom Communications at 2 (Buy) [6] Valuation Metrics - Zoom Communications has a Forward P/E ratio of 13.27, which is lower than the industry's average Forward P/E of 25.02 [7] - The company has a PEG ratio of 8.4, compared to the Internet - Software industry's average PEG ratio of 1.85 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 91, placing it in the top 37% 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]