Morgan Stanley analyst Meta Marshall upgraded Zoom Video from an Equal-Weight rating to an Overweight rating and raised the price target from $360 to $400. “We’re committed to democratizing AI accessibility, offering it to all our customers regardless of business size, included at no extra charge with a paid license.” As of Aug. 23, 2021, Zoom had 240,744,533 outstanding shares of Class A common stock and 56,383,369 outstanding shares of Class B common stock. The U.S. government has been increasing its scrutiny of Zoom on several fronts.
If your team uses Slack to communicate in real time, your system administrator can integrate Zoom and Slack for easy video conferencing on the fly. If you or a team member are working remotely and are trying to discuss a complicated concept via text alone, it might be a challenge. Instead of going through booking a Zoom meeting on your calendar, you can type “/zoom” into Slack, and a meeting link will appear directly in your Slack conversation for you and your teammate to join. A “Zoom Meeting” simply refers to a meeting that’s hosted using Zoom, and attendees can join the meeting in-person, via webcam or video conferencing camera, or via phone.
Zoom Video Communications MarketRank™ Stock Analysis
Zoom Video is free cash flow-profitable and achieves decent margins as well. In the fourth-quarter, the video-conferencing company reported $332.7M in free cash flow, showing 81% year-over-year growth. During this time, Zoom Video’s free cash flow margin expanded from 16.4% to 29.0%, chiefly because of the firm’s success with the lucrative enterprise market segment. The enterprise customer base is hugely important to Zoom Video, and the outlook for FY 2025 is a positive one as well. After the pandemic, however, Zoom Video’s growth has cratered significantly and the firm only achieved a disappointing top line growth rate of 2.6% year over year in its most recent quarter. Enterprise revenues, which are derived from the largest customers on the Zoom platform, grew 5% to $667M, but overall Zoom Video’s revenue growth has been a major disappointment.
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Zoom looks like a bargain given how solid the business is right now.
They join the Zoom session with the intent to disrupt the meeting. Luckily, Zoom bombing can be prevented by enabling Zoom’s privacy settings. Once you’ve selected the Zoom plan you’d like to start using, you can sign up and download Zoom onto your computer to start using it. Now that growth is coming back to earth, the stock has fallen 51% from its high last year. Despite that, there are several good reasons to think Zoom could stage a rebound.
- Zoom Video recently backed off from a change in its terms of service for platform users that would have enabled it to gather data to train AI models.
- This figure measures by what percentage a software company has been able to grow its revenues from the same customers year over year.
- In July 2021, Zoom Video and Five9 (FIVN), which automates call center services, announced a deal to merge.
- Rivals also include bundled productivity solution providers with video functionality such as Alphabet Inc.’s (GOOGL) Google G Suite and Microsoft Inc.’s (MSFT) Microsoft Teams.
But even though Zoom’s year-over-year revenue growth isn’t soaring, it continues to be positive (see chart below). Although it’s not at the same levels as a few years ago, that growth rate was unsustainable to begin with. The fact that revenue hasn’t fallen drastically is a testament to the strength and popularity of Zoom’s service.
Its current rating indicates more funds are buying than selling. Zoom closed its fiscal third quarter with 219,700 enterprise customers, up 5% from the same period last year. The Zoom IPO in April 2019 raised $752 million, with shares priced at 36. Zoom Phone, a cloud-calling product rolled out in 2019, lets customers set up group internet phone calls without video. The Zoom Phone replaces traditional business PBX phone systems.
Analysts have debated when decelerating sales will hit a bottom. At its annual Zoomtopia user conference in early October, the company said it will not charge customers for use of its AI Companion. Its capabilities include meeting/chat dowmarkets summaries and smart recordings. Zoom Video Communications’ stock is owned by a number of institutional and retail investors. 450 employees have rated Zoom Video Communications Chief Executive Officer Eric S. Yuan on Glassdoor.com.
Should you buy the stock?
The company is scheduled to release its next quarterly earnings announcement on Monday, May 27th 2024. When you’re in your meeting, click Manage Participants in the Zoom toolbar. You should see your meeting participants listed on the right-hand side of the screen.
Over the same time frame, O’Neil notes, the Dow Jones Industrial Average showed an average ratio of 15 times trailing 12-month earnings. Since its breakout past a 93.40 buy point in a canyonlike cup with handle, not only has the stock climbed 194%. Average trading volume has swelled, from roughly $230 million per day on a dollar basis on at its Feb. 18 breakout to nearly $3.1 billion today.
We do this to reflect that growth tends to slow more in the early years than it does in later years. 17 brokers have issued 12 month target prices for Zoom Video Communications’ stock. On average, they predict the company’s stock price to reach $78.00 in the next twelve months. This suggests a possible upside of 9.6% from the stock’s current price.
The move is designed to assess the potential for foreign participation in the U.S. telecom industry. Zoom has a research hub in China, and Five9 has operations in Russia. For its part, Five9 has posted sales of about $500 million over the last 12 months. The competition is made up of entrenched incumbents and innovative newcomers. Three, read The Big Picture each day to stay abreast of heavy distribution in the market.
The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. For that quarter, Zoom reported revenue of $1.137 billion, which slightly beat the $ 1.12 billion consensus estimate. The company reported earnings per share of $1.29, beating a consensus estimate of $1.08. Zoom forecast first-quarter adjusted earnings of $1.18 to $1.20 a share on revenue of about $1.125 billion, while analysts on average were projecting $1.13 a share on sales of $1.13 billion, according to FactSet.
Zoom Video Communications Insider Activity
Analysts surveyed by FactSet had on average expected adjusted net income of $1.15 a share on revenue of $1.13 billion. Analysts polled by FactSet had expected Zoom earnings of $1.09 a share on sales of $1.12 billion. You can record pepperstone broker review meetings to your device or to the Zoom cloud for later reviewing to make sure everyone is on the same page. When you schedule a new meeting, under the Password section, click the checkbox next to Require meeting password.
Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.
Management has previously pegged the sum of virtual events, telephony, and unified communications at $67 billion. After spending much of 2020 at or near an all-time high, shares started dropping in the fall of last year. It’s pushed the price-to-sales and price-to-earnings ratios to all-time lows. Zoom puts limits on the number of participants in a group call and the length of meetings. Zoom software gets high ratings for ease of use and simplicity following earlier video services that provided jerky images and out-of-sync audio.