JPMorgan analyst Mark R. Murphy maintained a Neutral rating on Zoom Communications Inc ZM with a price target of $80.Zoom reported fourth-quarter revenue of $1.18 billion, up 3.3%, which is in-line with analyst estimates. The communications company reported fourth-quarter adjusted earnings of $1.41 per share, beating analyst estimates of $1.30 per share.Also Read: Huawei Boosts AI Chip Production Despite Taiwan Semi And ASML Ban, Aims to Challenge Nvidia In ChinaZoom expects first-quarter revenue of $1.162  ...

Zoom’s (ZM) fourth-quarter fiscal 2025 adjusted earnings of $1.41 per share beat the Zacks Consensus Estimate by 7.63% but decreased 0.7% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Zoom’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average earnings surprise being 10.33%.Revenues of $1.184 billion beat the consensus mark by 0.50% and increased 3.29% year over year. Adjusting for foreign currency impact, revenues in constant ...

Don’t just invest—dominate with Tech Contrarians' realized return on closed positions of 65.8% since inception. You’ll get exclusive insights into high-focus stocks, curated watchlists, one-on-one portfolio consultations, and everything from live portfolio tracking to earnings updates on 50+ companies. Subscribe today for 20% off.It's time to revisit Zoom Communications Inc. (NASDAQ: ZM ) after the company reported its Q4 earnings results and outlook for FY26. The stock has been a textbook in-line performer ...

Here's our initial take on Zoom Communications' (ZM -1.70%) fiscal year 2025 fourth-quarter results.Key MetricsMetricQ4 FY24Q4 FY25Changevs. ExpectationsRevenue$1.15 billion$1.18 billion+3%BeatEarnings per share (adjusted)$1.42$1.41-1%BeatOperating cash flow$351.2 million$424.6 million+21%n/aEnterprise customer net dollar expansion rate101%98%-300 BPSn/aWeak growth, customer churn have changed the storyZoom's growth problems in recent quarters continued through the end of fiscal 2025 (ended Jan. 31, 2025). ...

Zoom Communications Inc. (NASDAQ:ZM) Q4 2025 Earnings Conference Call February 24, 2025 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 Kash Rangan - Goldman Sachs Samad Samana - Jefferies Ryan MacWilliams - Barclays Meta Marshall - Morgan Stanley Alex Zukin - Wolfe Research Peter Levine - Evercore Mark Murphy - JPMorgan Michael Turrin - Wells Fargo Arjun Bhatia ...

Core Insights - Zoom Communications reported revenue of $1.18 billion for the quarter ended January 2025, reflecting a year-over-year increase of 3.3% [1] - The earnings per share (EPS) for the quarter was $1.41, slightly down from $1.42 in the same quarter last year [1] - The reported revenue met the Zacks Consensus Estimate, showing a surprise of +0.50%, while the EPS exceeded expectations by +7.63% [1] Financial Performance Metrics - Zoom's shares have returned +2.9% over the past month, outperforming the Zacks S&P 500 composite, which declined by -0.5% [3] - The company has 192,600 enterprise customers, slightly below the average estimate of 196,933 [4] - Customers generating over $100K in TTM revenue totaled 4,088, closely matching the average estimate of 4,089 [4] - Current Remaining Performance Obligation (RPO) stands at $2.25 billion, slightly below the average estimate of $2.27 billion [4] - Total Remaining Performance Obligations (RPO) are reported at $3.80 billion, exceeding the average estimate of $3.76 billion [4] - Non-Current Remaining Performance Obligation (RPO) is $1.55 billion, above the average estimate of $1.48 billion [4]

Zoom Communications Q4 FY25 Earnings February 24, 2025 © 2025 Zoom Communications, Inc. Use of non-GAAP financial measures In addition to the financials presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes the following non-GAAP metrics: Revenue in Constant Currency, non-GAAP gross profit, non-GAAP gross margin, non-GAAP R&D expense, non-GAAP S&M expense, non-GAAP G&A expense, non-GAAP operating margin, non-GAAP income from operations, non-GAAP net ...

Company Performance - Zoom Communications reported quarterly earnings of $1.41 per share, exceeding the Zacks Consensus Estimate of $1.31 per share, but slightly down from $1.42 per share a year ago, representing an earnings surprise of 7.63% [1] - The company posted revenues of $1.18 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 0.50% and showing an increase from $1.15 billion year-over-year [2] - Over the last four quarters, Zoom has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - The immediate price movement of Zoom's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3] - Year-to-date, Zoom shares have increased by approximately 1.1%, compared to a 2.2% gain in the S&P 500 [3] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.29 on revenues of $1.18 billion, while for the current fiscal year, the estimate is $5.29 on revenues of $4.79 billion [7] - The estimate revisions trend for Zoom is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Zoom belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - Zoom Communications reported better-than-expected earnings driven by advancements in AI and strong enterprise growth [1][2] Financial Performance - The company announced fiscal Q4 2025 results with an EPS of $1.41, surpassing analysts' expectations of $1.30 [2] - Revenue increased by 3.3% year-over-year to $1.184 billion, exceeding projections of $1.178 billion [2][3] - Operating cash flow rose by 20.9% to $424.6 million, while free cash flow increased by 25.1% to $416.2 million [3][6] - GAAP operating margin improved by 430 basis points year-over-year to 19% [6] Business Focus and Strategy - Zoom specializes in video conferencing and voice call solutions, with a significant focus on AI innovations like Zoom AI Companion [4][7] - The enterprise segment contributed approximately 59% of total revenue, with a 5.9% increase in enterprise revenue to $706.8 million [5][6] - The number of clients generating over $100,000 in revenue increased by 7.3% over the past four quarters [5] Future Outlook - For fiscal 2026, Zoom projects revenues between $4.785 billion and $4.795 billion, indicating moderate growth [8] - Management expects non-GAAP EPS to range from $5.34 to $5.37, emphasizing efficiency to maintain profitability [8] - The company is focused on customer retention, with a net dollar expansion rate for enterprise clients just below 100% [9] - Plans to leverage AI integration across services to enhance competitiveness against rivals like Microsoft Teams [9]

Financial Data and Key Metrics Changes - Total revenue for Q4 grew approximately 3% year over year to $1,184 million, exceeding guidance by $4 million [20] - Non-GAAP gross margin in Q4 was 78.8%, slightly lower than the previous year due to strategic investments in AI [24] - Operating cash flow increased 21% year over year to $425 million, while free cash flow grew 25% to $416 million [26] - For FY '25, total revenue grew 3% and total enterprise revenue grew 5% year over year [27] Business Line Data and Key Metrics Changes - Enterprise revenue grew approximately 6% year over year, now making up 60% of total revenue [20] - The number of enterprise customers contributing over $100,000 in trailing twelve months revenue grew 7% year over year [21] - Zoom Docs usage more than doubled quarter over quarter, indicating strong adoption [12] Market Data and Key Metrics Changes - Americas revenue grew 4% year over year, EMEA grew 2%, and APAC grew 3% [23] - The number of contact center customers with over $100,000 in ARR grew over 100% year over year [14] Company Strategy and Development Direction - The company is focused on expanding AI capabilities to drive customer value and rapidly innovate within Zoom Workplace [17] - Strategic partnerships, such as with Amazon, are expected to enhance distribution channels and drive growth [66] - The company aims to return its online business to growth while continuing to move its enterprise business upmarket [54] Management's Comments on Operating Environment and Future Outlook - Management described the macro environment as mixed but stable, with positive momentum in the enterprise segment [62] - The company is encouraged by the traction of its value proposition and total cost of ownership in the market [17] - Future growth is expected to be driven primarily by enterprise customers, with online growth anticipated to be flat to slightly down [48] Other Important Information - The company plans to launch a custom AI companion add-on in April to automate workplace tasks [8] - Non-GAAP diluted net income per share in Q4 was $1.41, exceeding guidance by $0.11 [24] Q&A Session Summary Question: AI capabilities as a tailwind for business growth - Management believes AI investments are already enhancing service stickiness and driving customer value, with plans to monetize AI features for enterprise customers in the future [34] Question: AI's impact on larger customers' decisions - Management noted that customers are increasingly recognizing the value of AI features without additional costs, which builds trust and long-term relationships [40] Question: Top three drivers for new revenue in FY '26 - Management indicated that enterprise growth will be the dominant driver, with contact center and AI also contributing significantly [46] Question: Go-to-market investments and large customer deals - The company is prioritizing moving upmarket and accelerating channel partnerships to drive growth in contact center and other services [54] Question: Demand environment post-election - Management characterized the demand environment as mixed but stable, with improvements in churn rates and enterprise momentum [62] Question: Use cases for the custom AI companion - The company aims to provide flexibility for customers to customize their AI needs, enhancing productivity and collaboration [73] Question: Margin profile for AI products - Management expects increased usage in AI to be offset by efficiencies, maintaining a focus on profitability while investing in growth [81]