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Zoom Video Communications Inc ZM

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Zoom Shows No Signs of Slowing With Another Massive Quarter; FVE Up to $223

Dan Romanoff, CPA Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

No-moat Zoom continues to blow past investor expectations with significant upside compared to guidance while delivering a better outlook that leaves room for upside over the coming quarters, especially on the margin front, in our opinion. The video-first communications platform company continues to penetrate the market by leveraging its cloud-based solutions’ ease of use and innovative features, such as OnZoom and Zapps, both introduced at Zoomtopia in November of last year. We see a long runway for growth as the company gains traction with Zoom Phone and evolves its main application to a communication platform, and we are impressed by management’s ability to overdeliver in terms of both growth and margins. Given exceptional results, strong guidance, and our annual model roll, we are once again raising our estimates, which drives our fair value estimate to $223 per share from $176. We still view shares as overvalued.

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Company Profile

Business Description

Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company’s cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

Contact
55 Almaden Boulevard, 6th Floor
San Jose, CA, 95113
T +1 888 799-9666
Sector Communication Services
Industry Telecom Services
Most Recent Earnings Jan 31, 2021
Fiscal Year End Jan 31, 2022
Stock Type Aggressive Growth
Employees 4,422

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