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 ...

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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 ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of 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? ...

Based on my analysis, Zoom Communications (NASDAQ: ZM ) presents a compelling investment opportunity for investors who are looking for a technology company that not only has demonstrated financial resilience but also generate consistent free cashflow. Although theWith over 7 years of experience in the buy-side, my investment philosophy is rooted in both fundamental bottom-up analysis and quantitative modelling. My forte lies in identifying perception gaps to capitalize on over-pessimism and excessive exuber ...

SAN JOSE, Calif., Jan. 30, 2025 (GLOBE NEWSWIRE) -- Zoom Communications, Inc. (NASDAQ: ZM) today announced it will release its financial results for the fourth quarter and full fiscal year 2025 on Monday, February 24, 2025, after the market closes. A live Zoom Webinar of the event can be accessed at 2:00 pm PT / 5:00 pm ET through Zoom’s investor relations website at https://investors.zoom.us. A replay will be available approximately two hours after the conclusion of the live event. About ZoomZoom’s mission ...

Core Insights - Zoom Video Communications has shown strong stock performance, rallying 36.3% over the past six months, significantly outperforming the broader Zacks Computer and Technology sector, which grew by 12.3% [1] - The company is transitioning into an AI-first platform for workplace collaboration, indicating substantial upside potential [1] Financial Performance - Zoom's latest quarterly results revealed a 3.6% year-over-year revenue growth to $1.18 billion, surpassing analyst expectations [2] - Enterprise revenues, which now account for 59% of total revenues, increased by 5.8% to $698.9 million, showcasing successful penetration into larger organizations [2] - The company maintained a non-GAAP operating margin of 38.9% and generated free cash flow of $458 million in Q3 of fiscal 2025 [2] Strategic Initiatives - Zoom's balance sheet is robust, with approximately $7.7 billion in cash and marketable securities, allowing for strategic investments and acquisitions [3] - The company has authorized an additional $1.2 billion share repurchase program, totaling $2 billion, reflecting management's confidence in the business [3] AI and Innovation - The AI strategy is gaining momentum, with AI Companion 2.0 seeing a 59% increase in monthly active users quarter over quarter [4] - Upcoming launches of Custom AI Companion and AI Companion Studio in early 2025 aim to capture additional revenue through enterprise customization [5] Market Expansion - Zoom's Contact Center solution achieved a milestone with its largest deal of over 20,000 seats in EMEA, with customer count surpassing 1,250, marking an 82% year-over-year growth [6] - The acquisition of Workvivo has led to a 72% year-over-year growth in customer count, with significant deals secured, including one with a Fortune 10 company [7] Operational Metrics - Monthly churn reached an all-time low of 2.7%, down from 3% a year ago, indicating improved customer retention [8] - Deferred revenues grew by 5% year over year to $1.38 billion, suggesting healthy future revenue recognition [8] Customer Base and Revenue - The number of enterprise customers contributing over $100,000 in trailing 12-month revenues increased by 7.1% year over year to 3,995, representing 31% of total revenues [9] Competitive Position - Despite competition from Microsoft and Cisco, Zoom's innovative and customer-centric approach differentiates it in the market [10] - The forward 12-month price-to-sales ratio of 5.08 reflects market confidence in Zoom's growth potential [10] Future Outlook - Zoom has raised its fiscal 2025 revenue guidance to between $4.656 billion and $4.661 billion, indicating approximately 2.9% year-over-year growth [12] - The Zacks Consensus Estimate for fiscal 2025 suggests a revenue growth of 2.87% to $4.66 billion and earnings of $5.43 per share, a 4.22% rise year over year [13] Investment Case - The transition to an AI-first platform positions Zoom to capture growing enterprise demand for intelligent collaboration solutions [15] - Expansion into adjacent markets through Contact Center and Workplace solutions diversifies revenue streams and increases customer stickiness [15] - Zoom's financial profile remains strong, with industry-leading margins and robust cash flow generation [15] - The stock's valuation appears attractive relative to its growth potential in the evolving workplace collaboration space [16]

Investment Rating - The report suggests a positive investment outlook for Zoom Communications, indicating that the company is currently undervalued in the US SaaS sector and recommends active monitoring of the stock [4]. Core Insights - Zoom has transitioned its focus towards enterprise business, with enterprise revenue contributing 59% of total revenue as of FY2025Q3, driven by large customers contributing over $100,000 annually [2][16]. - The company is set to accelerate revenue growth starting from FY2025Q3, driven by new product penetration and AI commercialization [2][40]. - The launch of the AI-driven Zoom Workplace platform is expected to enhance customer retention and drive additional sales to enterprise clients [3][4]. Summary by Sections Historical Overview - Zoom was founded in 2011 and saw its stock price increase nearly tenfold in 2020 due to a surge in daily participants during the pandemic, reaching 300 million users [1][10]. - The company has shifted its business focus towards enterprise solutions, with significant growth in large customer segments [1][16]. Financial Stability and Cash Flow - The company reported a quarterly operating cash inflow of approximately $500 million, with total revenue of $1.18 billion in FY25Q3, reflecting a year-over-year increase of 3.6% [2][40]. - As of FY25Q3, Zoom had $7.7 billion in cash and securities, indicating strong liquidity [2][47]. Product and Market Development - The introduction of Zoom Workplace, an AI-centric integrated communication platform, is expected to enhance user experience and drive sales [3][58]. - The UCaaS market is projected to grow significantly, with Zoom maintaining a strong market position despite competition from Microsoft and Cisco [66][70]. Catalysts for Growth - The upcoming launch of new AI features and products, including AI Companion and Zoom Contact Center, is anticipated to boost revenue and customer retention [4][11]. - The migration of customers from the soon-to-be-discontinued Workplace from Meta to Workvivo is expected to contribute to revenue growth [4][53]. Management and Corporate Structure - The management team has a strong technology background, with many members having previously worked at Cisco and Microsoft [30][31]. - The company plans to significantly reduce stock-based compensation over the next few years, aiming to lower the dilution impact on shareholders [35][39].

Zoom Team Chat updates include a new sidebar to organize and streamline chat communication, support for code blocks and in-line code, and AI Companion integrations that help users improve productivity SAN JOSE, Calif., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Today Zoom Communications, Inc. (NASDAQ: ZM) announced the launch of its redesigned Team Chat sidebar, offering users a more customizable and efficient workspace. The new sidebar allows users to organize chats, channels, and apps according to their needs, wit ...

Zoom Communications (ZM) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Shares of this video-conferencing company have returned -6.4% over the past month versus the Zacks S&P 500 composite's -3.5% change. The Zacks Internet - Software industry, to which Zoom belongs, has lost 5.9% over this period. Now the key question is: Where could the stock be headed in the near term?While media r ...