That, coupled with the successful IPO and constant investment in innovations, gives us confidence that Zoom is here to stay and will perhaps even become a full-on end-to-end enterprise collaboration SaaS. As of Q2 2022, Zoom had sold over 4 million Zoom Phone units worldwide. Thanks to its global coverage, with 70+ countries supported, and industry-agnostic support of modern, flexible working environments, the solution has proven to be very popular. In addition to video calls, Zoom is also popular for hosting events, such as lectures and webinars.
Even though the pandemic isn’t over, the environment today is very different. Companies that absolutely needed to adopt Zoom’s software have already done so. Some of those companies are starting to bring workers back to the office. While remote work will probably be more prevalent in the post-pandemic world than in the past, plenty of workers will no longer be using Zoom as often.
Prior to founding Zoom, Yuan was corporate vice president of engineering at Cisco, and was a founding engineer and vice president of engineering for web and videoconferencing platform Webex. The U.S. government has been increasing its scrutiny of Zoom on several fronts. In 2020, the United States charged a China-based Zoom executive with conspiring to disrupt videoconference commemorations of the 1989 Tiananmen Square democracy protests. Zoom is also the focus of several ongoing federal investigations related to its dealings with Beijing, according to the Journal.
- While it’s still just a toddler on the Nasdaq, Zoom is now being forced to take on adult responsibilities for investors, thanks to its unexpectedly rapid ascent.
- Bawa has assumed increased responsibilities elsewhere in the business.
- The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups.
- Zoom is also the focus of several ongoing federal investigations related to its dealings with Beijing, according to the Journal.
Zoom’s recent earnings release was for Q3 of the fiscal year 2023, ending April 30, 2022. Revenue for the quarter was $1.1 billion, up 12% year over year. While that growth may not appear impressive at first glance, it’s important to remember that it was on top of 191% growth in Q3 of 2022. As Zoom laps the quarters where the pandemic had its greatest impact on revenue, growth numbers will appear lower than what investors may be used to. Amidst all this stock volatility, Zoom has consistently produced strong business results, and the recent sell-off has made shares much more affordable.
As mentioned above, on Sept. 30, 2021, Five9 announced that the two parties had mutually agreed to abandon the deal. The company said that the agreement had not received the required number of votes from Five9 shareholders to approve the merger. Earlier in September, The Wall Street Journal reported that a U.S. Department of Justice-led panel, named Team Telecom, was investigating the proposed merger’s potential national security risks. One way to invest in Zoom and diversify at the same time might be to buy an index fund or exchange-traded fund.
These are a treasure trove of information about the company’s operations, financials, customers, case studies, leadership team, challenges and growth opportunities. In other words, all the things that can help investors determine if Zoom is a worthy addition to their portfolio. Investors should also note that ZM has a PEG ratio of 0.41 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory.
Zoom Total Revenue & Growth Trends
The virus has caused many to work remotely, creating a larger demand for conferencing tools that enable workers and teams to keep in touch and continue collaborating. Perhaps no company is more emblematic of the pandemic’s impact on the stock market than Zoom Video Communications (ZM -0.45%). https://traderoom.info/ After going public in April of 2019, Zoom ended that year up only 9.7%, compared to the S&P 500’s 12.8% return over that same time frame. With the pandemic forcing all of our interactions online, Zoom became a household name and the stock ended 2020 up 444% from its initial public offering.
Zoom’s stock during the pandemic
Zoom increased the range to between $32 and $35 this week, and on Wednesday it priced above the top of that range, valuing the company at $9.2 billion. 450 employees have rated Zoom Video Communications Chief Executive Officer Eric S. Yuan on Glassdoor.com. Eric S. Yuan has an approval rating of 97% among the company’s employees. This puts Eric S. Yuan in the top 30% of approval ratings compared to other CEOs of publicly-traded companies.
IG International Limited receives services from other members of the IG Group including IG Markets Limited. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. Prices above are subject to our website terms and agreements. „Contact center is an absolutely really important part of the phone strategy,” Steckelberg said in response. „The way we approach that today is through partnering. We have great relationships with Five9. Eric and Rowan are very good friends.” Acquisition talks cooled for a while and picked up in the last three months, said people with knowledge of the transaction, who asked not to be named because the discussions were confidential.
These offers do not represent all available deposit, investment, loan or credit products. When the pandemic hit, video communication became essential, and that’s when Zoom’s stock reached its highest point in October 2020. Throughout this year, the stock has remained relatively flat, only experiencing a small increase of 1.12% on the day being discussed. Zoom could invest in building the product itself, but customers „do not want to wait,” Yuan said. Zoom’s goal is to be not only a video service used for meetings with co-workers and clients, but to become the center of all work communication, including for customer service reps in call centers. Salesforce needed 14 years as a public company to reach a market cap of $100 billion.
Zoom Stock Scores an Upgrade Ahead of Earnings. Analyst Cites More Stable Usage.
The predicted earnings per share and revenue growth give us an insight into the market’s expectations for the company. To stay competitive as more people go back to their offices, Zoom has been developing new tools powered by artificial intelligence. It is also planning to enter into the Contact Center and Docs markets to take on Microsoft and Google. These strategic moves will be closely watched to see if Zoom can maintain its success and increase its market share. Zoom Video Communications the company that provides video communication tools, and it is about to release its third quarter earnings report.
Best Stocks To Buy Under $1
The number of Zoom meetings skyrocketed during the pandemic, but according to the statistics, the numbers haven’t fallen in the years since. It was continuously rising from June 2020 to October 2020, reaching $559 on the 20th of October. It dipped after the COVID-19 vaccine was announced and has never reached that peak again. Zoom’s shares have been trading at a value below $100 since August 2022. Despite being a cross-platform application, Zoom’s mobile and desktop versions offer slightly different features.
Getting there required three multibillion-dollar acquisitions and four distinct revenue sources. It will be difficult for Zoom to make any major acquisitions using its stock as currency after the Five9 deal collapsed. The time for that was probably last year when the stock was darwinex review soaring and confidence that it would keep soaring was high. The window of opportunity for Zoom to use its inflated stock to diversify via acquisitions appears to be closed. Zoom expects to report lower revenue in its third quarter than it reported in its second quarter.