Zoom (ZM) To Report Earnings Tomorrow: Here Is What To Expect

Adam Hejl /
2023/11/19 2:01 am EST

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

Last quarter Zoom reported revenues of $1.14 billion, up 3.6% year on year, beating analyst revenue expectations by 2.2%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and its net revenue retention rate in jeopardy. The company added 92 enterprise customers paying more than $100,000 annually to a total of 3,672.

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

This quarter analysts are expecting Zoom's revenue to grow 1.6% year on year to $1.12 billion, slowing down from the 4.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.08 per share.

Zoom 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's peers in the video conferencing segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Five9 delivered top-line growth of 16% year on year, beating analyst estimates by 2.5% and 8x8 reported revenue decline of 1.3% year on year, exceeding estimates by 0.8%. Five9 traded down 6.8% on the results, and 8x8 was up 1.3%.

Read our full analysis of Five9's results here and 8x8's results here.

There has been positive sentiment among investors in the video conferencing segment, with the stocks up on average 8.1% over the last month. Zoom is up 5.4% during the same time, and is heading into the earnings with analyst price target of $82.2, compared to share price of $64.44.

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