Finding a New Normal as Zoom’s Q4 Strength Is More Than Offset by Weaker Outlook; FVE Down to $160

While Zoom reported fourth-quarter results that exceeded the high end of guidance for both revenue and non-GAAP operating profit, we are significantly reducing our value estimate to $160 per share, from $260 per share, based on guidance that was meaningfully short of our model and FactSet consensus for fiscal 2023. In turn, we have reduced confidence in Zoom's longer-term outlook as online customers churn off and enterprise growth cannot make up the difference. Accordingly, we are lowering our growth and margin expectations by several hundred basis points in each year of our discrete 10-year forecast as we struggle to define Zoom's normalized financial model post-COVID-19.