ZM Earnings Prediction
The chart below shows how ZM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ZM sees a -1.86% change in stock price 10 days leading up to the earnings, and a -0.46% change 10 days following the report. On the earnings day itself, the stock moves by +0.87%. This data can give you a slight idea of what to expect for the next quarter's release.
ZM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.18B
3.29%
0.56%
Gross Margin
75.73%
-0.22%
-0.21%
Operating Margin
19.01%
29.32%
22.41%
Net Margin
31.07%
19.18%
76.73%
EPS
1.16
22.11%
75.76%
No Data Available
ZM Earnings Analysis
Zoom Video Communications Inc Corporation (ZM.O) Earnings Conference Call
Positive
Earnings Beat Expectations: Zoom Video Communications, Inc. beats earnings expectations with reported EPS of $1.41, exceeding expectations of $1.31.
AI-Driven User Growth: FY25 was marked by major advancements in AI, transforming Zoom into an AI-first work platform, with a 68% quarter-over-quarter growth in monthly active users of Zoom AI Companion.
Custom AI Companion Launch: The introduction of Custom AI Companion add-on in April aims to automate workplace tasks, enhancing personalization and integration with existing data and third-party tools.
Zoom Phone Expansion Success: Zoom Workplace had a significant win with Amazon in Q4, showcasing strong traction in Zoom Phone with new customers and expansions.
Record ARR Deal Achievement: The Contact Center achieved its largest ARR deal in history with a Fortune 100 US tech company, demonstrating the ability to win demanding enterprise customers.
Customer Growth Surge: Workvivo experienced a record quarter with an 89% year-over-year growth in customers, driven by strategic partnerships and strong demand.
Revenue Growth Exceeds Guidance: Total revenue grew approximately 3% year-over-year to $1.184 billion, exceeding guidance by $4 million, with Enterprise revenue growing 6% year-over-year.
Churn Rate Improvement: Average Monthly Churn improved to 2.8%, marking the lowest churn rate in a fourth quarter.
Improved Operating Margin: Non-GAAP operating margin improved to 39.5%, reflecting continued investment in AI and emerging growth businesses while maintaining profitability.
Cash Flow Growth: Operating cash flow increased 21% year-over-year to $425 million, with free cash flow growing 25% to $416 million, indicating strong cash generation capabilities.
Negative
Revenue Growth Slowdown: Total revenue growth was only 3% year-over-year, indicating a slowdown in growth compared to previous periods.
Earnings Performance Analysis: Despite beating earnings expectations, the non-GAAP diluted net income per share was $1.41, which is $0.01 lower than Q4 of last year, primarily due to higher income tax and unrealized foreign exchange losses.
Enterprise Customer Spending Stagnation: The trailing 12 months net dollar expansion rate for Enterprise customers remained flat at 98%, suggesting a lack of growth in existing customer spending.
Customer Retention Challenges: Average Monthly Churn was 2.8%, which, while an improvement, still indicates that customer retention is a concern.
Gross Margin Analysis: The non-GAAP gross margin in Q4 was 78.8%, slightly lower than the previous year, primarily due to strategic investments in AI, which may impact profitability in the short term.
Q1 FY26 Revenue Guidance: The guidance for Q1 FY26 indicates only 2% year-over-year revenue growth at the midpoint, reflecting ongoing challenges in the market.
Disappointing Revenue Growth Outlook: For FY26, the expected revenue growth is only 2.7% year-over-year at the midpoint, which may not meet investor expectations for a high-growth tech company.
ZM FAQs
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ZM Earning Call Sentiment
Zoom Video Communications, Inc. (NASDAQ:ZM) Q4 2025 Earnings Call Transcript
ZM.O
0.34%Positive
The earnings call summary reflects a positive outlook with strong financial metrics, including a 3% revenue growth and a 25% increase in free cash flow. The strategic focus on AI and enterprise growth, along with a significant share repurchase program, boosts investor confidence. Despite some unclear management responses in the Q&A, the overall sentiment remains positive due to the optimistic guidance and strategic initiatives, such as AI integration and new product launches. The absence of market cap data suggests a moderate positive impact on stock price.
