Professional
Added to YB: 2024-05-22
Pitch date: 2024-05-21
ZM [bullish]
Zoom Communications Inc.
+39.88%
current return
Author Info
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Company Info
Zoom Communications Inc. provides an Artificial Intelligence-first work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.
Market Cap
$24.2B
Pitch Price
$64.00
Price Target
89.00 (-1%)
Dividend
N/A
EV/EBITDA
14.84
P/E
21.26
EV/Sales
3.46
Sector
Software
Category
growth
Zoom Video Communications, Inc.: Strong Period With Contact Center Experiencing Good Momentum
ZM: Q1 beat on strong contact center momentum; FY guide raised. Enterprise growth +5.4% YoY. $100k+ customers +8%. Margins 40% vs 38% prior on cost cuts & price hikes. Buyback of 2.4M shares for $150M. Sees revenue growth trough in Q2, acceleration in H2. Narrow moat on switching costs & network effects. Aim to disrupt $100B collab software mkt with ease of use. Freemium & direct sales. Bulls: user base stickiness, disruptive tech, strong margins. Bears: tough comps, competitive bundling risk, growth trajectory.
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