Core Insights - Zoom Communications Inc. reported stronger-than-expected earnings for its first quarter, with earnings of $1.43 per share, surpassing the analyst consensus estimate of $1.31, and quarterly revenue of $1.17 billion, meeting the Street estimate [1] - CEO Eric S. Yuan highlighted the company's performance as a testament to its platform strength and AI-first innovation, noting that customers are increasingly turning to Zoom for efficiency and improved experiences in a challenging macroeconomic environment [2] - Following the earnings announcement, Zoom shares fell by 1.5% to $81.03 [3] Financial Guidance - Zoom raised its fiscal 2026 adjusted EPS guidance from a range of $5.34 to $5.37 to a new range of $5.56 to $5.59, exceeding the $5.41 analyst estimate [2] - The company also increased its revenue outlook from a range of $4.79 billion to a new range of $4.8 billion to $4.81 billion, compared to the previous estimate of $4.79 billion [2] Analyst Ratings and Price Targets - Rosenblatt analyst Catharine Trebnick maintained a Buy rating on Zoom and raised the price target from $90 to $100 [8] - Morgan Stanley analyst Meta Marshall maintained an Equal-Weight rating and increased the price target from $79 to $85 [8] - Wells Fargo analyst Michael Turrin also maintained an Equal-Weight rating, boosting the price target from $75 to $80 [8]

Core Insights - Zoom Communications reported revenue of $1.17 billion for the quarter ended April 2025, reflecting a year-over-year increase of 2.9% and a surprise of +0.89% over the Zacks Consensus Estimate of $1.16 billion [1] - The earnings per share (EPS) for the quarter was $1.43, surpassing the previous year's $1.35 and exceeding the consensus EPS estimate of $1.30 by +10.00% [1] Financial Performance Metrics - Zoom's shares have returned +15.8% over the past month, outperforming the Zacks S&P 500 composite's +12.7% change [3] - The company has 182,600 enterprise customers, which is below the average estimate of 193,166 [4] - Customers generating over $100K in trailing twelve months (TTM) revenue totaled 4,192, slightly above the average estimate of 4,155 [4] - Current Remaining Performance Obligation (RPO) stands at $2.36 billion, exceeding the average estimate of $2.33 billion [4] - Total Remaining Performance Obligations (RPO) is $3.88 billion, slightly above the average estimate of $3.86 billion [4] - Non-Current Remaining Performance Obligation (RPO) is $1.52 billion, marginally above the average estimate of $1.51 billion [4] Geographic Revenue Breakdown - Revenue from the Americas reached $848 million, surpassing the average estimate of $838.48 million, with a year-over-year change of +3.5% [4] - Revenue from Europe, the Middle East, and Africa (EMEA) was $185 million, slightly above the average estimate of $184.58 million, reflecting a +0.5% change year-over-year [4] - Revenue from the Asia Pacific (APAC) region was $142 million, just below the average estimate of $143.01 million, with a +2.9% change compared to the previous year [4] - Online revenue was reported at $470 million, slightly below the average estimate of $472.82 million [4] - Enterprise revenue reached $704.70 million, exceeding the average estimate of $689.42 million [4]

Core Viewpoint - Zoom Communications Inc. is expected to report first-quarter earnings with an anticipated earnings per share of $1.31 and revenue of $1.17 billion, while the stock has shown mixed performance over the past year [1] Group 1: Stock Performance - The stock has increased by 17.5% in the past month and is up 1.5% year to date, but it remains down 29.7% over the past year [1] - The current share price is $82.87, which is slightly below the eight-day simple moving average (SMA) of $83.36, indicating a short-term bearish signal [2] Group 2: Technical Indicators - Longer-term indicators show bullish momentum with the 20-day SMA at $80.08, the 50-day SMA at $76.00, and the 200-day SMA at $75.73, all below the current price [2] - The Moving Average Convergence Divergence (MACD) reading is at 2.43, suggesting a bullish bias, while the Relative Strength Index (RSI) is at 66.55, indicating strong buying interest without excessive exuberance [3] Group 3: Analyst Sentiment - Analysts maintain a cautious stance with a consensus rating of Neutral and a price target of $84.14, while the average target from recent analyst calls is $88.67, implying a modest 6.88% upside from current levels [4] - A positive earnings report or guidance could lead to further upside, but any missteps may dampen enthusiasm [4]

Core Insights - The analysis focuses on high-quality companies that can outperform the market over the long term due to competitive advantages and high levels of defensibility [1]. Group 1 - The analysis is centered on companies in Europe and North America, without constraints regarding market capitalization, covering both large-cap and small-cap companies [1]. - The author has an academic background in sociology, holding a Master's Degree with an emphasis on organizational and economic sociology, and a Bachelor's Degree in Sociology and History [1].

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 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]