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Zoom Video Communications Inc ZM Stock Quote

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Morningstar‘s Stock Analysis ZM

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Is it the right time to buy or sell?

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Zoom Delivers Steady Results, but Guides Slightly Lower; FVE Down to $95

Dan Romanoff, CPA Senior Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

Narrow-moat Zoom reported solid results for its fiscal third quarter, featuring revenue slightly above the top end of guidance with meaningfully better profitability. However, it provided guidance that was slightly lower than our model for the fourth quarter. Enterprise strength continues to be overshadowed by online weakness, while currency headwinds worsened, consistent with most of our software coverage, and sales cycles continue to elongate. Considering guidance and our expectations that macro conditions worsen, we lowered our estimates meaningfully for fiscal 2024 and are lowering our fair value estimate to $95 per share, from $115. We continue to prefer our wide moat names during the prolonged software selloff.

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Key Statistics ZM

Company Profile ZM

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.

55 Almaden Boulevard, 6th Floor
San Jose, CA, 95113
T +1 888 799-9666
Industry Software - Application
Most Recent Earnings Oct 31, 2022
Fiscal Year End Jan 31, 2023
Employees 8,422

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