ZM ER numbers

reports Q4 beats with 78% Y/Y revenue growth. The upside Q1 outlook has revenue of $199-201M (consensus: $186.1M) and EPS of about $0.10 compared to the $0.06 estimate.
For FY21, Zoom sees $905-915M in revenue (consensus: $869.97M) and EPS of $0.42-0.45 (consensus: $0.29).
Q4 operating cash flow was up 129% Y/Y to $36.6M. FCF was $26.6M.
Cash and equivalents totaled $855.2M at the end of the quarter.
Customers with more than 10 employees grew 61% Y/Y to 81,900.

IMO I think the numbers just okay… (compared with recently up)but I haven’t read the cc transcript so I can’t comment further. Beside last Q the 2021 Q1 will be warm up for the numbers,I’m not optimistic like Saul, but I do hope I can have some +70% yoy on this Q and beat to mid 80’s.

I have mid position here and will keep my patients to add more on the dip.



"IMO I think the numbers just okay… "

Hey Rick…you are a hard man to please! It seems like you and the market feel the same way. I hope it does pullback so that I can load up on a bit more.

Revenue soared 78% to $188.3 million from $105.8 million a year ago.

Total revenue was up 88% year-over-year to $622.7 million.

81,900 customers with at least 10 employees, a 61% improvement YoY.

21Q1 revenue guidance of between $199 million and $201 million, exceeding projected $185.6 million.

21FY Expecting between $905 million and $915 million, beating $869.5 million forecast.

Yuan deems the impact of COVID-19 on Zoom’s business as more than a temporary event.

“This will dramatically change the landscape of workers collaborating remotely”

“In the last 30 days alone, average daily downloads are up 90% versus the prior 30-day period, with greater user engagement as evidenced by a 17% increase in user session per day and a 3% increase in average session length,” Bernstein analyst Zane Chrane wrote in a note to clients last week. Zoom has already added more new active users this year than it did in 2019, he added.

Perhaps others agree with Rick and are skeptical of the performance; but for a long term play, I am excited.



Hi Harley,

You are totally right😂
But I would say if ZM didn’t run a +70% YTD,I’ll very happy with the results. I also agree this special event will give ZM a super tailwind to hold the hyper growth much longer. That’s why I keep my mid position and will add it on comfortable price range.


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Zoom is trading at 55x trailing sales and just gave guidance that they expect to grow revenue 6% next quarter sequentially and for the fiscal year they projects 47% growth. At mid-point of guidance they would trade at 37x sales twelve months from now if the share price is unchanged.

While I realize companies play the ridiculous expectation game, it seems like if they “added more users in this quarter than all of last year”, they would guide to higher revenue than a 6% increase for the quarter they are already in!

I am pretty disappointed in this. Seems like some of the enthusiasm for blowout results in future quarters from coronavirus were misplaced in the near term.


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I’m also disappointed by the guidance. I skimmed through the CC and this is what the CFO had to say:

In terms of our results, Nikolay, for Q4, we did not see any impact directly related to coronavirus. As a reminder, we have definitely seen an uptick in usage, but a lot of that is on the free side. So it’s very early to tell whether or not that’s going to convert long term into paying customers. As we mentioned, we are seeing impact and continued to build capacity to ensure that we can support this increased usage. So we are seeing an impact on our gross margins, which is why we’re guiding you towards the lower end of our range for next year.

Or in short - they are seeing a huge uptick in free usage that requires infrastructure upgrades and it’s eating into their margins. They can’t assess yet how many paying customers they will get out of this.

I’m torn on the fence about this. They have a great product that is selling well but also some non trivial competition from the big guys. I don’t see the valuation being justified. I already sold some shares before the call, I think I’m holding the rest till next earnings report. If they don’t adjust the guidance there I’m expecting a steep decline in the share price.