Earnings To Watch: Zoom Video (ZM) Reports Q4 Results Today

Adam Hejl /
2022/02/28 6:26 am EST
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Video conferencing platform Zoom (NASDAQ:ZM) will be reporting earnings today after market hours. Here's what to look for.

Last quarter Zoom Video reported revenues of $1.05 billion, up 35.1% year on year, beating analyst revenue expectations by 3.07%. It was a mixed quarter for the company, with a very optimistic guidance for the next quarter but decelerating growth in large customers. The company added 7,200 enterprise customers with more than 10 employees to a total of 512,100.

Is Zoom Video buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Zoom Video's revenue to grow 19.5% year on year to $1.05 billion, slowing down from the 368% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.07 per share.

Zoom Video Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing 2 upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 16.5%.

Looking at Zoom Video's peers in the video conferencing segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. RingCentral (NYSE:RNG) delivered top-line growth of 34% year on year, beating analyst estimates by 3.14% and Five9 (NASDAQ:FIVN) reported revenues up 35.7% year on year, exceeding estimates by 4.94%. RingCentral traded down 16.1% on the results, Five9 was up 2.67%. Read our full analysis of RingCentral's results here and Five9's results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.13% over the last month. Zoom Video is down 18.8% during the same time, and is heading into the earnings with analyst price target of $306.4, compared to share price of $125.2.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.