Zoom Expanding Zoom One Platform; Increases Long-Term Margin Guardrails; FVE Steady at $115

Zoom hosted its investor day, highlighting a resilient financial model and introducing a bevy of new products. We came away impressed with innovation that we think supports our narrow moat rating, and maintain our fair value estimate of $115 per share. Like much of our software universe, we see shares as attractive but see better risk-reward trade-offs in some of our wide-moat names that have sold off sharply over the last year. Our investment thesis remains centered around a long runway for growth as the company gains traction with Zoom Phone, Zoom Video Engagement Center, and the Zoom One platform. We see new solutions as incremental from a financial perspective over the next several years, although we think the Zoom Email and Calendar app may help convert free small and midsize business users to paid users over the coming quarters.