Zoom Media has earnings released after the market close on Monday and could be active on Tuesday.
ZM – Daily Chart
The price of ZM shares are trading at the $63.78 level with support at the $60 level.
Video conferencing platform Zoom will report results with analysts expecting to grow by 1.4% last quarter, with revenues of $1.15 billion, up 2.6% year-on-year. It was a mixed quarter for the company, with an impressive beat of billings estimates but management guidance is for growth to slow. The company added 79 enterprise customers paying more than $100,000 annually to reach a new total of 3,810.
This quarter, analysts are expecting Zoom’s revenue to grow 2% year over the year to $1.13 billion, in line with the 2.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to be $1.19 per share.
Zoom was one of the hot stocks in the pandemic as lockdowns forced many to work from home. A return to office work ended the company’s boom and the stock has failed to find strength since the 2020 highs.
Looking at Zoom’s peers in the video conferencing segment, some have reported their Q1 results, giving a hint for Zoom’s performance. 8×8’s revenues were lower by 2.8% year on year, meeting analysts’ expectations. Five9 reported revenues that were 13.1% higher, beating estimates by 2.9%. 8×8 shares jumped 20% following the results while Five9 was also up by 2.1%.
Zoom is looking to capitalize on the boom in AI products with a partnership announced in March with Amazon. Zoom Workplace, the company’s AI-powered collaboration platform, is now available in AWS Marketplace. The deal will allow Zoom to find new customers with the ability to find, test, and buy software such as Meetings, Team Chat, and Whiteboard.
Baidu shares have shown some recent weakness but a sharp increase in AI users could help the stock price in coming quarters.
Zoom shares have been under pressure as growth was unable to match the pandemic valuation but steady earnings could see the stock mount a rally if customers continue to grow.