Analyst Note
| Dan Romanoff, CPA |We are raising our fair value estimate for narrow-moat Zoom after the company reported third-quarter results that exceeded the high end of guidance and provided a fourth quarter outlook that was also better than expected. The company's continued pivot to larger customers was evident this quarter, while Zoom Phone remained strong and churn continued to normalize. We remain impressed by Zoom’s ability to over-deliver simultaneously in terms of both growth and margins. We see a long runway for growth as the company gains traction with Zoom Phone and evolves its main application to a unified communication platform with the recent chat launch and the pending release of video engagement center.