Zoom Video Communications (NASDAQ:ZM) delivered a robust first-quarter performance, surpassing analyst expectations for both earnings per share (EPS) and revenu

Zoom Video Shares Fall 2% After Q1 Results


blog post cover photo

Image credit: FMP

Zoom Video Communications (NASDAQ:ZM) delivered a robust first-quarter performance, surpassing analyst expectations for both earnings per share (EPS) and revenue.

The video conferencing leader reported an adjusted EPS of $1.35, exceeding the Street estimate of $1.19. Revenue for the quarter was $1.14 billion, slightly higher than the anticipated $1.13 billion.

Despite these strong results, Zoom's stock declined by more than 2% pre-market today due to cautious guidance for the second quarter. For Q2, Zoom expects an adjusted EPS between $1.20 and $1.21, below the Street estimate of $1.23. The projected Q2 revenue range of $1.145 to $1.15 billion is at the lower end of the analyst estimate of $1.15 billion.

For the full fiscal year 2025, Zoom forecasts an adjusted EPS of $4.99 to $5.02, which is above the Street estimate of $4.91. The revenue guidance for 2025 is set between $4.61 billion and $4.62 billion, closely aligning with the consensus of $4.61 billion.

Zoom's first-quarter revenue increased by 3.2% year-over-year (YoY), with Enterprise revenue growing by 5.3% YoY to $665.7 million. The company's GAAP operating margin was 17.8%, while the adjusted operating margin was 40.0%. Zoom's operating cash flow increased by 40.6% YoY to $588.2 million, demonstrating strong financial health.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep