Zoom Video Communications


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SKU: ZM Category:


Zoom has witnessed a sharp correction in its stock price and was one of the many growth stocks that got battered on account of the interest rate hike expectations. The company reported a good third quarter with revenue increased 35% year over year to $1.05 billion, exceeding high-end guidance of $1.02 billion. Zoom’s growth was driven by the strength in their direct and channel businesses, which grew at twice the rate of their online business and improved churn in both the online and direct segments. The company has seen a strong demand for Zoom Video Webinars, Zoom Rooms, and Zoom Phone. Its Zoom Phone saw triple-digit revenue growth year over year in the last quarter, reaching 30 customers with over 10,000 paid seats. In the previous quarter, the company also had a number of notable Zoom Meetings wins, including a large expansion for a leading federal system integrator, bringing their total number of users to 45,000. It demonstrates the security and reliability of their Zoom For Government platform, a competitive win with a global technology firm for 16,500 meeting licences to modernize the way their employees communicate, and expansion to another 35,000 meeting licences. Given the company’s current valuation, we are optimistic about its 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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