Why Is Zoom Video (ZM) Down 12% Since Last Earnings Report?
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Zoom Video Communications Earnings Report:
- Shares of Zoom Video Communications have dropped by 12% in the past month, underperforming the S&P 500.
- First-quarter fiscal 2025 earnings beat estimates with adjusted earnings per share of $1.35 and revenues of $1.14 billion.
- Enterprise revenues increased by 5.3% year over year, representing 58.3% of total revenues.
- Non-GAAP gross margin was 79.3% in the first quarter, slightly lower than the previous year due to investments in AI innovation.
- Zoom expects second-quarter fiscal 2025 revenues between $1,145 and $1,150 million.
Estimates and Outlook:
- Fresh estimates for Zoom Video have trended downward in the past month.
- The company has a strong Growth Score of A but a value grade of C.
- Zoom Video has a Zacks Rank #3 (Hold) with expectations of an in-line return in the next few months.
- Model N, another industry player, reported a gain in revenues and EPS for the last quarter.
- Model N is expected to post earnings of $0.36 per share for the current quarter, with a Zacks Rank #4 (Sell).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
