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Zoom Video Communications Inc ZM

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Zoom Smartly Expands Communications Platform With Five9 Acquisition; Fair Value Estimate Unchanged

Dan Romanoff, CPA Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

On July 18 no-moat Zoom announced it was acquiring Five9 for $14.7 billion in an all-stock deal that is expected to close in the first half of 2022. Our initial model passes suggest modest potential changes to our fair value estimate, but management did not provide guidance for the combined entity so there are too many moving parts and we are therefore leaving our fair value estimate unchanged at $245 per share. We suspect our model will evolve as management offers more details around the financials of the combined company.

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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 Technology
Industry Software - Application
Most Recent Earnings Apr 30, 2021
Fiscal Year End Jan 31, 2022
Stock Type Aggressive Growth
Employees 5,059

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