Instead, Zoom would be negatively impacted if companies decided that fewer of their employees needed access to host Zoom video calls. It is important to note that ZM charges on a per-user basis - meaning that just because employees use Zoom less, that does not mean that they pay Zoom less. However, I expect many to wonder how ZM will fare post-pandemic. Those with a long term horizon might not be focused on the margin compression. ZM ended the year with $4.2 billion in cash versus no debt. One might also notice that the full year revenue outlook seems most nearly identical to the first quarter outlook annualized. I expect that the margin compression will be a result of ZM heavily increasing its investment in growth. Looking forward, ZM expects revenues to grow nearly 42% and for non-GAAP EPS to grow only 8%. ZM saw free cash flow jump from $26.6 million to $377.9 million.įor the full year, ZM generated $672 million in net income, representing a blistering 25% net margin. ZM arguably helped contribute to this trend, as it proved that operating leverage is fact not fiction. In addition to adding new customers in general, its existing customers also added new licenses for its employees, as evidenced by the 130% net dollar expansion rate.Ģ020 saw one of the largest inflows of cash into the tech sector in recent history. ZM closed out 2020 with a strong fourth quarter, as revenues grew 369% YOY to $882 million. With the stock now trading at levels not seen since late last year, is it now time to take another look at the company? Zoom Stock Earnings Zoom Video Stock PriceĪfter peaking near $500 per share, ZM has seen its stock clobbered alongside the recent tech correction. I rate shares neutral and recommend waiting for the valuation to catch up. ZM has a strong balance sheet, but the valuation appears rich even after this selloff. However, as we move beyond the pandemic, growth is expected to decelerate considerably and even more so the following year. The company has definitely earned much of its strong performance, as its underlying financials have grown very rapidly due to the pandemic. Zoom Video ( NASDAQ: ZM) is a stock which seems to rarely trade at anything close to a reasonable valuation. Zoom Video Communications, Inc.Photo by Alistair Berg/DigitalVision via Getty Images Zoom Announces Termination of Merger Agreement with Five9 Condensed Consolidated Balance Sheets (In thousands) As of OctoJanuAssets (unaudited) Current assets: Cash and cash equivalents $ 1,322,435 $ 2,240,303 Marketable securities 4,095,520 2,004,41 Consolidated Balance Sheets (Unaudited, in thousands) As of Janu2021 Assets Current assets: Cash and cash equivalents $ 1,062,820 $ 2,240,303 Marketable securities 4,356,446 2,004,410 Accounts receivable, Condensed Consolidated Balance Sheets (In thousands) As of ApJanuAssets (unaudited) Current assets: Cash and cash equivalents $ 1,407,305 $ 1,062,820 Marketable securities 4,318,974 4,356,446 Condensed Consolidated Balance Sheets (In thousands) As of JJanuAssets (unaudited) Current assets: Cash and cash equivalents $ 937,443 $ 1,062,820 Marketable securities 4,582,708 4,356,446 Accĭirector Offer Letter by and between the Registrant and William R. Severance and Change in Control Plan and form of Participation Agreement thereunder Offer Letter by and between the Registrant and Greg Tomb, dated May 31, 2020 Condensed Consolidated Balance Sheets (In thousands) As of OctoJanuAssets (unaudited) Current assets: Cash and cash equivalents $ 1,096,174 $ 1,062,820 Marketable securities 4,068,818 4,356,44 Consolidated Balance Sheets (In thousands) As of Janu2022 Assets (unaudited) Current assets: Cash and cash equivalents $ 1,086,830 $ 1,062,820 Marketable securities 4,325,836 4,356,446 Accounts receivable, Non-Employee Director Compensation Policy, as amendedĪmended and Restated Bylaws of Zoom Video Communications, Inc. Condensed Consolidated Balance Sheets (In thousands) As of ApJanuAssets (unaudited) Current assets: Cash and cash equivalents $ 1,029,546 $ 1,086,830 Marketable securities 4,566,845 4,325,836ĭirector Offer Letter by and between the Registrant and Cindy Hoots dated January 4, 2023 Condensed Consolidated Balance Sheets (In thousands) As of JJanuAssets (unaudited) Current assets: Cash and cash equivalents $ 1,380,121 $ 1,086,830 Marketable securities 4,648,393 4,325,836 A Condensed Consolidated Balance Sheets (In thousands) As of OctoJanuAssets (unaudited) Current assets: Cash and cash equivalents $ 1,492,910 $ 1,086,830 Marketable securities 5,001,507 4,325,83
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