Core Insights - Zoom Communications, Inc. reported financial results for the fourth quarter and fiscal year ended January 31, 2025, highlighting a transformation into an AI-first company driven by the Zoom AI Companion [1][2]. Financial Performance - Fourth quarter total revenue reached $1,184.1 million, reflecting a year-over-year increase of 3.3%, while full fiscal year total revenue was $4,665.4 million, up 3.1% year over year [5][10]. - Non-GAAP net income for the fourth quarter was $446.9 million, or $1.41 per share, compared to $444.0 million, or $1.42 per share in the same quarter of the previous year [4][6]. - The company achieved a GAAP operating margin of 19.0% in Q4, an increase of 430 basis points year over year, and a non-GAAP operating margin of 39.5%, up 80 basis points year over year [5][10]. Cash Flow and Share Repurchase - Operating cash flow for the fourth quarter was $424.6 million, a 20.9% increase year over year, with full fiscal year operating cash flow of $1,945.3 million, up 21.7% year over year [5][10]. - The company repurchased approximately 4.3 million shares of common stock in the fourth quarter and about 15.9 million shares during the full fiscal year [5][10]. Customer Metrics - The number of customers contributing more than $100,000 in trailing 12 months revenue increased by 7.3% year over year, totaling 4,088 customers [11]. - Zoom had approximately 192,600 Enterprise customers with a trailing 12-month net dollar expansion rate of 98% [11]. Financial Outlook - For the first quarter of fiscal year 2026, Zoom expects total revenue between $1.162 billion and $1.167 billion, with non-GAAP diluted EPS anticipated between $1.29 and $1.31 [18]. - For the full fiscal year 2026, total revenue is projected to be between $4.785 billion and $4.795 billion, with non-GAAP diluted EPS expected between $5.34 and $5.37 [18].

Core Viewpoint - Sigma Corporation has introduced the world's first mirrorless lens with an 18.8x zoom ratio, the 16-300mm F3.5-6.7 DC OS | Contemporary, which is designed to be versatile and portable, catering to a wide range of photographic needs [1][4]. Product Features - The Sigma 16-300mm F3.5-6.7 DC OS | Contemporary lens features an 18.8x zoom ratio, the largest for an APS-C format mirrorless lens, equivalent to 24-450mm in 35mm format [1][8]. - It is designed for various photography styles, including wide-angle, super-telephoto, and macro photography, making it suitable for landscapes, portraits, wildlife, and sports [5][7]. - The lens incorporates high-speed autofocus with a High-response Linear Actuator (HLA) motor, providing fast and accurate focusing, especially for moving subjects [6][11]. - It offers optical stabilization with 6 stops at the wide end and 4.5 stops at the telephoto end, enhancing image clarity in low light and at full zoom [12][16]. - The lens construction includes 20 elements in 14 groups, featuring advanced optical design for excellent aberration correction and sharp results throughout the zoom range [19][16]. Design and Portability - The lens is compact, measuring 73.8mm in diameter and 121.4mm in length, and weighs only 615g, making it highly portable [10]. - It features a dust- and splash-resistant structure, along with a water- and oil-repellent coating to protect against contaminants [14][15]. Availability and Pricing - The Sigma 16-300mm F3.5-6.7 DC OS | Contemporary will be available in multiple mounts, including L-Mount, Sony E-Mount, Fujifilm X Mount, and Canon RF Mount, with a retail price of $699 [1][3]. - The lens is set to launch in April 2025 for L-Mount and Sony E-Mount, and in May 2025 for Fujifilm X Mount and Canon RF Mount [3].

Financial Performance - Zoom Communications Inc. is set to release its fourth-quarter financial results on February 24, 2025, with expected earnings of $1.35 per share, a decrease from $1.42 per share in the same period last year [1] - The company projects quarterly revenue of $1.19 billion, an increase from $1.15 billion a year earlier [1] - In the third quarter, Zoom reported revenue of $1.18 billion, surpassing the consensus estimate of $1.16 billion, and adjusted earnings of $1.38 per share, exceeding analyst estimates of $1.31 per share [2] Analyst Ratings - Citigroup analyst Tyler Radke maintained a Neutral rating and reduced the price target from $86 to $85 [4] - Cantor Fitzgerald analyst Thomas Blakey initiated coverage with a Neutral rating and a price target of $87 [4] - Wells Fargo analyst Michael Turrin upgraded the stock from Underweight to Equal-Weight and raised the price target from $70 to $85 [4] - Morgan Stanley analyst Meta Marshall maintained an Equal-Weight rating and increased the price target from $86 to $96 [4] - Rosenblatt analyst Catharine Trebnick maintained a Buy rating and raised the price target from $78 to $95 [4]

Core Viewpoint - Zoom Video is expected to report modest revenue growth and a decline in earnings per share for the fourth quarter of fiscal 2025, reflecting ongoing challenges in the enterprise market and competition in the collaboration space [1][2][17]. Revenue and Earnings Estimates - Zoom anticipates fourth-quarter fiscal 2025 revenues between $1.175 billion and $1.18 billion, with the Zacks Consensus Estimate at $1.18 billion, indicating a 2.77% increase year-over-year [1]. - Non-GAAP earnings per share are projected to be in the range of $1.29-$1.30, with the Zacks Consensus Estimate at $1.31 per share, representing a 7.75% decline from the previous year [2]. Earnings Surprise History - Zoom has a positive earnings surprise history, with a 5.34% surprise in the last reported quarter and an average surprise of 14.29% over the trailing four quarters [3]. Earnings Prediction Model - The current Earnings ESP for Zoom is 0.00%, and it holds a Zacks Rank 3 (Hold), indicating that the model does not predict a definitive earnings beat this time [4][5]. Growth and Strategic Initiatives - The company reported a 3.6% year-over-year revenue growth in the fiscal third quarter, suggesting a stabilization after a period of deceleration [6]. - Management projects approximately 2.7% year-over-year revenue growth for the fourth quarter, reflecting cautious spending from enterprise customers [7]. - Strategic initiatives, such as the introduction of Zoom Workplace for Education and the Video SDK for resale partners, may positively influence performance, although their impact is expected to be limited due to late-quarter timing [8]. Financial Metrics and Challenges - Zoom's gross margins declined to 78.9% in the fiscal third quarter from 79.7% the previous year, influenced by ongoing AI investments [9]. - The company has a strong balance sheet with $7.7 billion in cash and investments and a $2 billion share repurchase program, providing some downside protection [10]. - Despite a trailing 12-month net dollar expansion rate of 98% for enterprise customers, challenges remain in fully monetizing the existing customer base amid economic uncertainty [10]. Stock Performance and Valuation - Zoom's stock has increased by 41.3% over the past six months, outperforming the broader Zacks Computer and Technology sector, which grew by 7.7% [11]. - The company's price-to-sales ratio of 5.44 is higher than the industry average of 5.1, indicating high growth expectations but also elevated risk [13]. Investment Outlook - The investment thesis for Zoom suggests a balanced case heading into the earnings report, with signs of stabilization but ongoing competition and cautious enterprise spending [17]. - Current shareholders may benefit from holding their positions while monitoring the execution of the AI-first strategy, and new investors might find better entry points post-earnings [19].

Company Overview - Zoom Communications (ZM) closed at $85.17, with a slight decrease of -0.04% compared to the previous day, underperforming the S&P 500's gain of 0.24% [1] - Over the past month, ZM shares have increased by 8.48%, significantly outperforming the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37% [1] Upcoming Earnings - The earnings report for Zoom Communications is scheduled for February 24, 2025, with an expected EPS of $1.31, reflecting a decrease of 7.75% from the same quarter last year [2] - Revenue is projected to be $1.18 billion, indicating a 2.77% increase compared to the equivalent quarter last year [2] Analyst Estimates - Changes in analyst estimates for Zoom Communications are crucial as they often reflect short-term business dynamics, with upward revisions indicating positive sentiment towards the company's operations and profitability [3] - The Zacks Rank system, which incorporates these estimate changes, currently rates Zoom Communications at 3 (Hold) [5] Valuation Metrics - Zoom Communications has a Forward P/E ratio of 16.11, which is below the industry average of 29.86, suggesting that the company is trading at a discount compared to its peers [6] - The current PEG ratio for ZM is 2.97, compared to the Internet - Software industry's average PEG ratio of 2.14 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [8] - Research indicates that industries in the top 50% of the Zacks Industry Rank outperform those in the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Analysts expect Zoom Communications to report quarterly earnings of $1.31 per share, reflecting a year-over-year decline of 7.8%, with revenues projected at $1.18 billion, an increase of 2.8% from the previous year [1] Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [1][2] Revenue Estimates by Geography - Analysts estimate 'Geographic Revenue- Asia Pacific (APAC)' at $145.10 million, showing a year-over-year increase of 2.3% [4] - 'Geographic Revenue- Europe, Middle East, and Africa (EMEA)' is projected at $188.37 million, reflecting a year-over-year change of 2.9% [4] - 'Geographic Revenue- Americas' is expected to reach $844.82 million, indicating a change of 2.8% from the prior year [5] Customer Metrics - The number of 'Enterprise Customers' is estimated to be 196,933, down from 220,400 in the same quarter last year [5] - The estimate for 'Customers >$100K TTM Revenue' stands at 4,089, compared to 3,810 a year ago [5] Remaining Performance Obligations (RPO) - 'Current Remaining Performance Obligation (RPO)' is projected at $2.27 billion, up from $2.08 billion in the same quarter last year [6] - 'Remaining Performance Obligations (RPO)' is expected to be $3.76 billion, compared to $3.57 billion a year ago [6] - The consensus for 'Non-Current Remaining Performance Obligation (RPO)' is $1.48 billion, slightly down from $1.50 billion reported in the same quarter last year [7] Stock Performance - Over the past month, Zoom shares have returned +9%, outperforming the Zacks S&P 500 composite's +4.7% change [7]

In this video, Motley Fool Analysts evaluate Zoom's (ZM 0.12%) current standing in the market. With ratings reflecting its post-pandemic challenges, they discuss management, financials, and future growth potential. Tune in to see if Zoom can navigate its way back to prominence or if it's destined for mediocrity.*Stock prices used were the prices of Jan. 15, 2025. The video was published on Feb. 18, 2025. ...

RIYADH, Saudi Arabia , Feb. 13, 2025 (GLOBE NEWSWIRE) -- In partnership with center3, Zoom, the AI-first work platform for human connection, has established its first node in Saudi Arabia. This initiative implements high-performance infrastructure to address the increasing demand for low-latency conferencing, thereby delivering enhanced service performance for users across the region. "As part of our mission to provide seamless and reliable communications globally, this node deployment in Saudi Arabia repr ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? T ...

Zoom Communications (ZM) closed at $86.18 in the latest trading session, marking a +0.07% move from the prior day. The stock lagged the S&P 500's daily gain of 0.72%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.35%.Shares of the video-conferencing company witnessed a gain of 4.59% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.35% and the S&P 500's gain of 1.02%.Analysts and investors alike will be keeping ...