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To see all exchange delays and terms of use please see Barchart’s disclaimer. Zoom has fought back by launching more comprehensive communications tools, starting with Zoom Team Chat. Now, Zoom offers its own full-suite Zoom Workplace solution with Google- and Microsoft-style Office productivity apps, a business email client, and more. By the end of 2020, Zoom’s year-over-year revenue had quadrupled, but by early 2022, the projections had changed, as Wedbush analyst Dan Ives predicted that “the work from home beneficiaries…
Zoom surpasses expectations as it calls for another quarter of single-digit growth
“This change reflects our evolution into an AI-first work platform for human connection and our vision for long-term growth,” founder and CEO Eric Yuan said on a conference call. The Motley Fool has positions in and recommends Zoom Video Communications. 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. Meetings on the platform can host as many as 1,000 participants, while webinars can scale up to as many as 50,000.
- That valuation positions the stock for a massive surge if the company can stoke a recovery in revenue growth.
- Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.
- Management’s revenue target for the period was roughly in line with the average Wall Street analyst target, but its profit target beat expectations.
- And yet the business performed solidly throughout the past few years even as the stock fell.
- Its forward price-to-earnings (P/E) ratio is just under 14, and the price-to-sales (P/S) ratio of less than 5 is just above all-time lows.
- That was not enough to persuade investors to buy Zoom stock, as it is up just 1% from year-ago levels.
These customers accounted for 31% of revenues, up from 29% in the year-ago quarter. The momentum is expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for customers contributing more than $100,000 in revenues is currently pegged at 4,042 for the third quarter fiscal 2025. However, ZM has been facing significant competition from Cisco, Microsoft and Google Meet.
Services
At the end of the second quarter of fiscal 2025, Zoom AI Companion had a reach of 1.2 million accounts. Positive momentum is expected in the to-be-reported quarter as well.These efforts are python iot projects expected to have boosted the adoption of the company’s solution among enterprise customers. The consensus estimate for enterprise customers in the fiscal third quarter is currently pegged at 196,459.Zoom Video’s freemium business model helps it win customers rapidly, whom it can later convert into paying customers. In the fiscal second quarter, customers contributing more than $100,000 in revenues in the trailing 12 months grew 7.1% to 3,933.
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Zoom Video Communications (ZM 2.34%) stock surged in Tuesday’s trading. The company’s share price closed out the daily session up 8%, according to data from S&P Global Market Intelligence. In addition to its strong quarterly results, the company issued third quarter EPS guidance above estimates and strong fiscal year 2025 guidance. ZM shares are trading higher Thursday after the company posted better-than-expected second-quarter financial results on Wednesday.
For the full year, Zoom is guiding for sales of $4.6 billion — a target that fell slightly short of the average analyst call for revenue of $4.66 billion. On the other hand, guidance for a profit between $4.85 per share and $4.88 per share topped the average analyst estimate for a per-share profit of $4.72 for the year. Zoom Video Communications (ZM Quick QuoteZM – Free Report) is slated to release its third-quarter fiscal 2025 results on Nov. 25.Zoom fxtm forex broker review expects third-quarter fiscal 2025 revenues between $1.162 billion and $1.165 billion.
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You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Still, operating income fell during that period, and much of the gain came from $114 million in “other income,” which consists of income from interest, foreign currency, and marketable securities. Unfortunately for Zoom bulls, that “increase” is likely a one-time event. Between the AI tool and its expected growth in hybrid and remote knowledge workers, Ark Invest believes Zoom’s average revenue per user (ARPU) will grow by 26% yearly. Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
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Zoom even initiated new growth efforts, building out an artificial intelligence (AI)-driven communications ecosystem. Then there is the endorsement of Ark Investment Management’s CEO Cathie Wood, whose bold predictions regarding other tech stocks (like Tesla and Bitcoin) have come to pass. Wood and her team predicted a $1,500-per-share price target for Zoom by 2026, a 22-fold gain from current levels.
Zoom, which changed its name from Zoom Video Communications to Zoom Communications on Monday, ended the quarter with approximately 192,400 enterprise customers. Online monthly average churn reached an all-time low of 2.7% in the quarter. Its forward price-to-earnings (P/E) ratio is just under 14, and the price-to-sales (P/S) ratio of less than 5 is just above all-time lows. That valuation positions the stock for a massive surge if the company can stoke a recovery in revenue growth.
The company expects adjusted earnings per share for the period to be between $1.18 and $1.20, coming in significantly ahead of the average analyst estimate’s previous call for per-share earnings of $1.15. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.10% per year. These returns cover a period from January 1, 1988 through October 7, 2024.
Still, the bear estimate calls for a $700-per-share or less stock price, amounting to more than a 10-fold gain from current levels if that price target holds. As Wood and others have stated, Zoom is much more than an online meeting platform. It is a comprehensive communications ecosystem that includes team chat platforms, online whiteboards, VoIP phone service, workspaces, email, and other services.
AVON, Ohio–(BUSINESS WIRE)– #AI–Jenne, Inc., a premier value-added distributor of technology products and solutions, is excited to announce a significant expansion of its portfolio with the additio… Comprehensive cross-platform coverage of the U.S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Alix Steel, Scarlet Fu, Carol Massar and Tim Stenovec. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Click the link below and we’ll review the no-spend challenge guide send you MarketBeat’s list of seven best retirement stocks and why they should be in your portfolio. Like every other company, Zoom says a serious injection of artificial intelligence (AI) is on the way. “What may have been a ‘nice-to-have’ is now a ‘must-have,'” the company explained, calling its Zoom AI Companion the “heartbeat” of its future.
Last Updated on November 28, 2024 by Bruce