Zoom Video (ZM) Reports Q1: Everything You Need To Know Ahead Of Earnings

Adam Hejl /
2023/05/22 3:02 am EDT

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 $1.12 billion, up 4.33% year on year, beating analyst revenue expectations by 1.55%. It was a weak quarter for the company, with full year guidance missing analysts' expectations. The company added 185 enterprise customers paying more than $100,000 annually to a total of 3,471.

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 0.97% year on year to $1.08 billion, slowing down from the 12.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.99 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 missed Wall St's revenue estimates twice over the last two years.

Looking at Zoom Video's peers in the productivity software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. 8x8 delivered top-line growth of 1.74% year on year, missing analyst estimates by 0.65% and Everbridge reported revenues up 7.86% year on year, exceeding estimates by 1.7%. 8x8 traded down 0.78% on the results, Everbridge was up 3.53%. Read our full analysis of 8x8's results here and Everbridge's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 3.39% over the last month. Zoom Video is up 5.02% during the same time, and is heading into the earnings with analyst price target of $84.4, compared to share price of $69.1.

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