Video conferencing platform Zoom Communications Q3 revenue beats estimates
Overview
Zoom Q3 revenue grows 4.4% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beats analyst expectations
Company increased stock repurchase authorization by $1 bln
Outlook
Zoom expects Q4 revenue between $1.230 bln and $1.235 bln
Company forecasts full-year revenue between $4.852 bln and $4.857 bln
Zoom anticipates full-year free cash flow between $1.860 bln and $1.880 bln
Result Drivers
ENTERPRISE REVENUE - Enterprise revenue increased 6.1% yr/yr, contributing to overall revenue growth
AI ADOPTION - Significant adoption of AI Companion 3.0 and AI-first Customer Experience suite driving customer engagement
STRONG CASH FLOW - Operating cash flow increased 30.2% yr/yr, reflecting disciplined operational approach
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.23 bln | $1.21 bln (25 Analysts) |
Q3 Adjusted EPS | Beat | $1.52 | $1.44 (25 Analysts) |
Q3 EPS |
| $2.01 |
|
Q3 Adjusted operating Margin |
| 41.20% |
|
Q3 Operating Margin |
| 25.20% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 15 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Zoom Communications Inc is $94.50, about 16.8% above its November 21 closing price of $78.63
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nGNX863FQX
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
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