Zoom Video (ZM) Reports Q3: Everything You Need To Know Ahead Of Earnings

Petr Huřťák /
2022/11/21 3:35 am EST

video conferencing platform Zoom (NASDAQ:ZM) will be reporting earnings today after market close. Here's what investors should know.

Last quarter Zoom Video reported revenues of $1.09 billion, up 7.63% year on year, missing analyst expectations by 1.57%. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year missing analysts' expectations. The company added 200 enterprise customers paying more than $100,000 annually to a total of 3,116.

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This quarter analysts are expecting Zoom Video's revenue to grow 4.9% year on year to $1.1 billion, slowing down from the 35.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.

Zoom Video Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 4.05%.

Looking at Zoom Video's peers in the video conferencing segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. RingCentral delivered top-line growth of 22.7% year on year, beating analyst estimates by 1.25% and Five9 reported revenues up 28.5% year on year, exceeding estimates by 1.35%. RingCentral traded up 10.5% on the results, Five9 was down 5.10%. Read our full analysis of RingCentral's results here and Five9's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.92% over the last month. Zoom Video is up 1.38% during the same time, and is heading into the earnings with analyst price target of $97.40, compared to share price of $81.73.

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