Zoom Video Communications


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SKU: ZM-1 Category:


Zoom delivered another stellar quarter and surged past the target price from our last report. The company has been on a roll with its freemium model gaining fantastic momentum over the past year and a half. The big revenue earners for Zoom are its large-contract customers who contribute over $100,000 in trailing-twelve-month revenue. These large enterprise clients have risen from 344 in 2019 to about 1,999 enterprises today which is exceptional growth. There is a high stickiness associated with these clients and the churn rate/ switching to competitive offerings is expected to be nominal. Smaller paying customers are also increasing and contributing more than a fifth of the top-line. The company’s new innovations such as Zoom Phone, Zoom Events, Zoom Rooms, and so on are also gaining mileage which is a positive sign. Despite all the competitive pressures, we are positive about Zoom’s future and give it a ‘Buy’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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