My First Zoom-Q1 Earnings Call

Go to Zoom Investor page to Zoom the Conference Call.

Game changer folks.

And that report. Just perfection.

More later

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It is stellar for sure. https://seekingalpha.com/pr/17537600-zoom-video-communicatio…

First Quarter Fiscal 2020 Financial Highlights:

Revenue: Total revenue for the quarter was $122.0 million, up 103% year-over-year.
Operating Income and Operating Margin: GAAP income from operations for the first quarter was $1.6 million, up from a loss from operations of $1.7 million in the first quarter of fiscal 2019. After adjusting for non-cash, stock-based compensation expense, non-GAAP income from operations for the first quarter was $8.2 million, up from a non-GAAP loss from operations of $0.8 million in the first quarter of fiscal 2019. For the first quarter, GAAP operating margin was 1.3% and non-GAAP operating margin was 6.7%.

Approximately 58,500 customers with more than 10 employees, up approximately 86% from the same quarter last year.
405 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 120% from the same quarter last year.
A trailing 12-month net dollar expansion rate in customers with greater than 10 employees above 130% for the 4th consecutive quarter.
Financial Outlook: Zoom is providing the following guidance for its second quarter fiscal 2020 and its full year fiscal 2020.

Second Quarter Fiscal 2020: Total revenue is expected to be between $129 million and $130 million and non-GAAP income from operations is expected to be between $2.0 million and $3.0 million. Q2 non-GAAP EPS is expected to be approximately $0.01 to $0.02 with approximately 301 million non-GAAP weighted average shares outstanding.
Full Year Fiscal 2020: Total revenue is expected to be between $535 million and $540 million and non-GAAP income (loss) from operations is expected to be between $0.0 million and $3.0 million. Full year non-GAAP EPS is expected to be approximately $0.02 to $0.03 with approximately 301 million non-GAAP weighted average shares outstanding.

Something like $550m forecast for full year.
Would be about a 40-42 TTM P/S just at today’s prices…so obviously paying a deluxe premium here.

I wish it would have snuck under the radar a bit…but staying on sidelines for now.

Dreamer

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First time for me too, to watch/listen a live video casted earnings call. Pretty cool.
They said their platform generate instant transcript of video conferences.
My little unfounded concern is their R&D center in China with >500 employees. With the scrutiny on natl security, will this become an issue?
I like that the CEO Eric owns >20% of total shares so he is eating his own cooking.

@HermioneW, China is a popular offshoring location for software development, like India. I wouldn’t read too much into it.

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while I have watched Saul for many years on this board, he still amazes me with his uncanny ability to pick up winners at right time…

When Saul disclosed he has a small position in ZM at the end of May, I was still not convinced… ofcourse due to valuation… this ER (and stock price jump today) obviously proved Saul right again… hats off Saul.

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