Zoom Earnings: Enterprise, Contact Center, and AI Ramping, as Revenue Accelerates

We raise our fair value estimate to $92 per share from $89 for narrow-moat Zoom, after the company reported solid fiscal third-quarter results that were above our expectations on both the top and bottom lines, while guidance for the fourth quarter was slightly ahead of our estimates. We made only modest changes to our model based on guidance. After a strong run of more than 60% since early August, shares now look fairly valued. Now that investors have seen revenue start to accelerate, the question becomes the progression of that acceleration. We made no changes to our model beyond the next few quarters, so the acceleration looks modest to us. However, given double-digit growth in both deferred revenue and CRPO, steeper acceleration seems possible.