Zoom Video Communications (ZM) Stock Price, News – TheStreet

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Mar 08,  · Zoom’s 14% decline was driven by a falling valuation. It became cheaper relative to sales and expected earnings. ZM PS and Forward PE Ratio data by YCharts These dynamics become even more clear. Mar 01,  · Moreover, Zoom’s growth investments will weigh on its profits. The company guided for its adjusted earnings per share to decline by roughly 30% to $ Still, CEO Eric Yuan believes these. Nov 09,  · If more people return to in-person work or if social distancing rules are eased, or both, fewer people could use Zoom. While a 20% stock .
 
 

 

Why zoom stock dropped – none:.Why Zoom Stock Dropped Today

 

Sometimes, you see a case of where the stock falls and it’s very clear that the market’s reacting to short-term, there’s like, we dialed back our estimates because of the supply chain or sometimes it’s even something like, we’re reinvesting in the business, so profits are going to be a little short this next couple of quarters.

I remember Target had a movement like that earlier this year. I think sometimes it can be a good reason to double down to invest in the stock if you spot a short-term reason, but other times, it feels more structural like what we saw with Peloton a few weeks ago. That revealed a pretty big crack in the business that I think a lot of us didn’t anticipate. I think it’s hard to have general rule for that. You have to take it on a case-by-case basis.

Jason Hall: I think that’s a key thing right there. Definitely a lot of it depends. Taylor, what about you? Taylor Carmichael: That’s a good question. What I love actually is when I know why the stock’s going down and the market is wrong, and I know the market is wrong. That just makes me exuberant. That makes me happy. A lot of times, you don’t know why.

Sometimes, there’s massive moves in stocks and sometimes the whole market is going down. When you have that the whole market is going down, I just duck my head and try not to look. But when COVID was hitting a year ago, early , you knew exactly why the market was going down. There was no question about it and I was a strong bull in that mess. I just knew we were going to come back and so it was ugly time for the stocks you’re holding, but it’s always exciting when you’re trying to buy things to get a cheaper price.

Zoom’s a special case. I think these are both those times that were buying opportunities. If you missed Zoom a year-ago in early , you didn’t buy it, you didn’t jump in. Now, this might be a good time as people are getting out because Zoom’s a powerful long-term story. But I think people like working from home. I think Zoom calls on The Motley Fool are going to continue and we’re going to keep doing this and it’s really neat ability to do your job from home or from wherever.

We could travel. Airbnb on their conference call, talked about combining them with Zoom and people just traveling the world and still working. You take your Zoom with you. You take your laptop with you, and you can work from anywhere, and how powerful that is and you couldn’t do that five years ago.

In general, I think as Jeremy said, it all depends. It depends on why the stock is going down. If you know why. There could definitely be when there’s these really big moves, it can definitely be a buying opportunity, but it’s always hard to predict short-term stuff.

Jason Hall: Yeah, that’s a big key right there. Connor, I would love to hear your thoughts on this too. Connor Allen: Yeah.

For me, when a stock falls a lot, as an analyst, I put more work than most people would do into each company that I own. I know my thesis of why I own it. I know a lot about the company and it’s almost like you have a relationship with the company.

You’re like, I love this company, this is the future and this is why I’m investing in it. It’s a little bit easier for me to see a 20 percent drop in a stock that I really like, and I’m just like, I’m not going to touch it, is my thesis still intact? If so, I’m still owning this company. But it hurts me when my thesis actually is broken from something that causes a 20 percent drop.

For example, Zillow , that happened this quarter when they came out and said that they were stopping their iBuying process, I sold the company because that was proof that the optionality that I thought they had wasn’t going to work out. I thought that was going to be a cash cow for the business.

When that happened and the stock sunk 20 percent, that hurt. Jason Hall: It fell for a clear reason and a legitimate reason. The thesis for the business completely changed, just like that. Connor Allen: Yeah, I was just saying, when you look at what has happened to a lot of companies this quarter is even when they have a good earnings report and they fall percent, Upstart’s a great example for me, where I’m like, I’m buying this. There is times to buy the dip and there are times to sell on the dip, and I think that’s what a lot of investors just don’t understand that every dip is not a buying opportunity.

But when it is, it can be great, and for a lot of investors. Jason Hall: I think to me the key is that We should buy regularly for most people, to have a regular cadence of buying and investing and once you own it, you follow the business and the thesis and then your glacial about changing anything.

If you’re planning to add money, that makes sense. But I think for me the best practice I found is slowing everything down. Don’t do anything quickly. Zoom Phone, which is the company’s new unified communications app , is helping drive this spending. Management reported in Q3 that Zoom Phone saw triple-digit percentage revenue growth year over year. A growing company like Zoom is often unprofitable, but Zoom has strong financials already.

This shows that Zoom’s profitability is accelerating as revenue is now outrunning the company’s costs. The stock market can be irrational and stock traders are prone to overreact to things. Zoom’s stock was definitely overpriced at its peak, but the momentum has swung so far the other way that the stock is now arguably a bargain. The stock price has now fallen to pre-COVID valuation levels, despite the business’s continued growth. Its price-to-earnings ratio of 34 is less than that of a consumer goods company like Nike , despite growing EPS at a triple-digit percentage rate.

It’s becoming harder to ignore Zoom based on the current valuation and substantial numbers it’s put up. If there is a worry for investors, it’s probably competition with Microsoft.

Microsoft is much larger than Zoom, making it a formidable competitor with deep pockets. Zoom, of course, competes with Microsoft Teams , which is a crucial cog in Microsoft’s grip on the enterprise market. Investors will want to monitor Zoom’s revenue growth and management’s comments on customer account growth to ensure that Zoom competes well. I think that there’s room for more than one winner in such a large market, but if Zoom starts losing so much business that its growth begins declining, investors might reconsider their stance on the stock.

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– Zoom Has Some Tough Calls to Make – WSJ

 
 

Additional information on Zoom’s reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Zoom’s results computed in accordance with GAAP. The program will expire in February The timing and the amount of any repurchased Class A common stock will be determined by Zoom’s management based on its evaluation of market conditions and other factors.

The repurchase program will be funded using Zoom’s working capital. Any repurchased shares of Class A common stock will be retired.

Zoom will host a Zoom Video Webinar for investors on February 28, at p. About Zoom Zoom is for you. Zoom is a space where you can connect to others, share ideas, make plans, and build toward a future limited only by your imagination. Our frictionless communications platform is the only one that started with video as its foundation, and we have set the standard for innovation ever since.

That is why we are an intuitive, scalable, and secure choice for large enterprises, small businesses, and individuals alike. Visit zoom. Zoom assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law. Zoom defines non-GAAP income from operations as income from operations excluding stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, acquisition-related expenses, and litigation settlements, net.

Zoom excludes the amount of employer payroll taxes related to employee stock plans, which is a cash expense, in order for investors to see the full effect that excluding stock-based compensation expense had on Zoom’s operating results. In particular, this expense is dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of the business.

Zoom views acquisition-related expenses when applicable, such as amortization of acquired intangible assets, transaction costs, and acquisition-related retention payments that are directly related to business combinations as events that are not necessarily reflective of operational performance during a period. Zoom excludes significant litigation settlements, net of amounts covered by insurance, that we deem not to be in the ordinary course of our business.

In particular, Zoom believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses and assist in the comparison with the results of other companies in the industry. Zoom defines non-GAAP net income and non-GAAP net income per share, basic and diluted, as GAAP net income attributable to common stockholders and GAAP net income per share attributable to common stockholders, basic and diluted, respectively, adjusted to exclude stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, acquisition-related expenses, gains on strategic investments, litigation settlements, net, income tax benefits from discrete activities, and undistributed earnings attributable to participating securities.

Zoom excludes gains on strategic investments, net because given the size and volatility in the ongoing adjustments to the valuation of our strategic investments, we believe that excluding these gains or losses facilitates a more meaningful evaluation of our operational performance.

Zoom excludes income tax benefits from discrete activities, including the income tax benefit related to the release of the US federal and state valuation allowance, because of their nonrecurring nature. Zoom defines free cash flow as GAAP net cash provided by operating activities less purchases of property and equipment. Zoom defines adjusted FCF as free cash flow plus litigation settlement payments, net.

Zoom adds back litigation settlement payments, net because they are not part of Zoom’s ongoing operating activities, and the consideration of measures that exclude such payments can assist in the comparison of cash generated from operations in different periods which may or may not include such payments and assist in the comparison with the results of other companies in the industry.

Zoom considers free cash flow and adjusted free cash flow to be liquidity measures that provide useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business.

Zoom defines a customer as a separate and distinct buying entity, which can be a single paid host or an organization of any size including a distinct unit of an organization that has multiple paid hosts. Zoom defines ARR as the annualized revenue run rate of subscription agreements from all customers at a point in time. For the trailing 12 months calculation, Zoom takes an average of the net dollar expansion rate over the trailing 12 months.

Consolidated Balance Sheets Unaudited, in thousands. Consolidated Statements of Operations Unaudited, in thousands, except share and per share amounts. Consolidated Statements of Cash Flows Unaudited, in thousands. For the fourth quarter, GAAP operating margin was For the fiscal year, GAAP operating margin was Customer Metrics Zoom defines a customer as a separate and distinct buying entity, which can be a single paid host or an organization of any size including a distinct unit of an organization that has multiple paid hosts.

Tags zoom video communications. Additional information on Zoom’s reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Zoom’s results computed in accordance with GAAP.

Zoom will host a Zoom Video Webinar for investors on November 22, at p. Zoom is for you. We help you express ideas, connect to others, and build toward a future limited only by your imagination. Our frictionless communications platform is the only one that started with video as its foundation, and we have set the standard for innovation ever since. That is why we are an intuitive, scalable, and secure choice for large enterprises, small businesses, and individuals alike.

Visit zoom. Zoom assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law. Zoom defines non-GAAP income from operations as income from operations excluding stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, acquisition-related expenses, and litigation settlements, net.

Zoom excludes the amount of employer payroll taxes related to employee stock plans, which is a cash expense, in order for investors to see the full effect that excluding stock-based compensation expense had on Zoom’s operating results. In particular, this expense is dependent on the price of our common stock and other factors that are beyond our control and do not correlate to the operation of the business.

Zoom views acquisition-related expenses when applicable, such as amortization of acquired intangible assets, transaction costs, and acquisition-related retention payments that are directly related to business combinations as events that are not necessarily reflective of operational performance during a period.

Zoom excludes significant litigation settlements, net of amounts covered by insurance, that we deem not to be in the ordinary course of our business.

In particular, Zoom believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses and assist in the comparison with the results of other companies in the industry. Zoom defines non-GAAP net income and non-GAAP net income per share, basic and diluted, as GAAP net income attributable to common stockholders and GAAP net income per share attributable to common stockholders, basic and diluted, respectively, adjusted to exclude stock-based compensation expense and related payroll taxes, expenses related to charitable donation of common stock, acquisition-related expenses, litigation settlements, net, gains on strategic investments, net, and undistributed earnings attributable to participating securities.

Zoom excludes gains on strategic investments, net because given the size and volatility in the ongoing adjustments to the valuation of our strategic investments, we believe that excluding these gains or losses facilitates a more meaningful evaluation of our operational performance.

Zoom defines non-GAAP weighted-average shares used to compute non-GAAP net income per share, basic and diluted, as GAAP weighted average shares used to compute net income per share attributable to common stockholders, basic and diluted, adjusted to reflect the common stock issued in connection with the IPO, including the concurrent private placement, that are outstanding as of the end of the period as if they were outstanding as of the beginning of the period for comparability.

Free Cash Flow. Zoom defines free cash flow as GAAP net cash provided by operating activities less purchases of property and equipment. Zoom considers free cash flow to be a liquidity measure that provides useful information to management and investors regarding net cash provided by operating activities and cash used for investments in property and equipment required to maintain and grow the business.

Zoom defines a customer as a separate and distinct buying entity, which can be a single paid host or an organization of any size including a distinct unit of an organization that has multiple paid hosts. Zoom defines ARR as the annualized revenue run rate of subscription agreements from all customers at a point in time. For the trailing 12 months calculation, Zoom takes an average of the net dollar expansion rate over the trailing 12 months.

Zoom Video Communications, Inc. Condensed Consolidated Balance Sheets In thousands. Condensed Consolidated Statements of Operations Unaudited, in thousands, except share and per share amounts. Skip to main navigation. November 22, PDF Version. For the third quarter, GAAP operating margin was Customer Metrics Zoom defines a customer as a separate and distinct buying entity, which can be a single paid host or an organization of any size including a distinct unit of an organization that has multiple paid hosts.

As of. October 31 , January 31 , Cash and cash equivalents. Marketable securities. Accounts receivable, net. Deferred contract acquisition costs, current. Prepaid expenses and other current assets. Total current assets. Accounts payable. Accrued expenses and other current liabilities. Deferred revenue, current. Total current liabilities. Preferred stock. Common stock. Additional paid-in capital.

Accumulated other comprehensive loss income. Retained earnings. Three Months Ended October 31 ,.

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