SAN JOSE, Calif., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Today, Zoom Communications, Inc. (NASDAQ:ZM) and Mitel, a global leader in business communications, announced the global launch of a unique hybrid cloud solution that integrates Zoom Workplace and Zoom AI Companion with Mitel's flagship communications platforms, including its leading telephony solutions. This marks a significant milestone in the strategic partnership between the companies announced in September 2024. Today, organizations are navigating the ...

Zoom Video (ZM) shares lost approximately 8% on Tuesday following the company's fourth-quarter fiscal 2025 earnings report, primarily due to underwhelming revenue guidance for the coming quarters. While the company beat the Zacks Consensus Estimate for revenues and earnings for the reported quarter, its forward-looking projections have raised concerns about growth prospects as more companies require employees to return to physical offices.Shares of Zoom have seen its stock gain 8.9% in the past year compare ...

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  ...

Core Insights - Zoom's fourth-quarter fiscal 2025 adjusted earnings per share (EPS) were $1.41, exceeding the Zacks Consensus Estimate by 7.63% but showing a year-over-year decrease of 0.7% [1] - The company reported revenues of $1.184 billion, surpassing the consensus mark by 0.50% and increasing 3.29% year over year [2] Financial Performance - Enterprise revenues, which accounted for 59.69% of total revenues, rose 5.9% year over year to $706.8 million [3] - The number of customers contributing over $100,000 in revenues in the trailing 12 months grew by 7.3% to 4,088, representing 31% of total revenues [3] - The total number of Enterprise customers at the end of the fiscal fourth quarter was approximately 192,600, with a net dollar expansion rate of 98% for Enterprise customers [4] Strategic Developments - Zoom achieved its largest Annual Recurring Revenue (ARR) deal in history with a Fortune 100 U.S. tech company in its Contact Center, with the number of Contact Center customers with over $100,000 in ARR growing more than 100% year over year [5] - The company also saw an 89% year-over-year growth in customers for Workvivo and signed three new deals with more than $1 million in ARR [5] Operating Metrics - Non-GAAP gross margin for the fiscal third quarter was 78.22%, up from 69.80% in the previous year, attributed to strategic investments in AI innovation [6] - Non-GAAP operating income increased by 5.46% year over year to $467.96 million, with an operating margin of 40.82% compared to 39.70% in the prior year [7] Balance Sheet and Cash Flow - As of January 31, 2025, total cash, cash equivalents, and marketable securities were $7.8 billion, up from $7.7 billion as of October 31, 2024 [8] - Net cash provided by operating activities for the fiscal fourth quarter was $424.6 million, reflecting a 20.9% year-over-year increase, while free cash flow rose by 25.1% to $416.2 million [8] Guidance - For the first quarter of fiscal 2026, Zoom expects revenues between $1.162 billion and $1.167 billion, with non-GAAP EPS anticipated in the range of $1.29 to $1.31 [9] - For fiscal 2026, the company projects revenues between $4.785 billion and $4.795 billion, with non-GAAP EPS expected to be between $5.34 and $5.37 [10]

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). ...

Financial Data and Key Metrics Changes - Total revenue for Q4 FY25 grew approximately 3% year-over-year to $1.184 billion, exceeding guidance by $4 million [27] - Non-GAAP gross margin in Q4 was 78.8%, slightly lower than the previous year due to strategic investments in AI [34] - Non-GAAP operating margin improved to 39.5%, up 81 basis points year-over-year [35] - Operating cash flow increased 21% year-over-year to $425 million, while free cash flow grew 25% to $416 million [38] Business Line Data and Key Metrics Changes - Enterprise revenue grew approximately 6% year-over-year, now making up 60% of total revenue [28] - The number of Enterprise customers contributing over $100,000 in trailing 12-month revenue grew by 7% year-over-year [29] - Zoom Docs usage more than doubled quarter-over-quarter, indicating strong adoption across the portfolio [17] Market Data and Key Metrics Changes - Americas revenue grew 4% year-over-year, EMEA grew 2%, and APAC grew 3% [33] - The total number of Workvivo customers grew 89% year-over-year, accelerating from 79% in Q3 [19] Company Strategy and Development Direction - The company is evolving into an AI-first work platform, focusing on enhancing AI capabilities across its services [8][14] - Strategic partnerships, such as with Mitel and Amazon, are aimed at expanding market reach and enhancing customer engagement [15][23] - The company plans to continue investing in AI and expanding its product offerings, particularly in Contact Center and Workvivo [21][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the value proposition and total cost of ownership gaining traction despite macro challenges [22] - The company anticipates continued growth in enterprise revenue and a focus on innovation to drive customer value [40][45] - Management acknowledged mixed but stable macro conditions, with record low churn rates in both online and enterprise segments [90] Other Important Information - The company repurchased 4.3 million shares for $355 million in Q4, contributing to a reduction in common shares outstanding [39] - Non-GAAP diluted net income per share in Q4 was $1.41, slightly lower than the previous year due to higher income tax and unrealized foreign exchange losses [35] Q&A Session Summary Question: AI capabilities as a tailwind for business growth - Management emphasized that AI investments are a top priority and are already driving customer engagement and service stickiness [50][51] Question: Impact of AI on larger customer decisions - Management noted that customers are increasingly valuing AI features, which enhances trust and drives adoption [60][62] Question: Ranking top drivers for new revenue in FY26 - Management indicated that enterprise growth will be the dominant driver, with Contact Center and Workvivo also contributing significantly [71][72] Question: Go-to-market investments and strategies - Management highlighted the importance of moving upmarket and enhancing channel partnerships to drive growth [80][82] Question: Demand environment post-election - Management characterized the macro environment as mixed but stable, with positive trends in enterprise and low churn rates [90][91] Question: Custom AI Companion use cases and adoption - Management discussed the flexibility of the custom AI Companion and its appeal to enterprise customers [104][106] Question: Long-term margin expectations with AI products - Management expressed confidence in maintaining margins through efficiency gains despite increased AI investments [118][120]

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]