ZM
Price: 6/2/2020: $208.08
Market Cap: 61.4 Billion
P/E: 1,224
Cash flow yield: .57%
P/S: 74.08
Current Numbers
June 2nd, 2020 1Q:2021 earnings highlights:
** Revenue was $328.167 million up 169.02% from $121.988 million
** TTM revenue was $828.837 Million
** TTM Revenue per share was $2.81 per share
** 1Q earnings was $.09 up from $.00 per share
** TTM Earnings were $.17
** Diluted share count 295,184,948 million
** Cash $1.105 billion: debt $0 million
** Free Cash flow for the quarter was $251.693 million up from $15.339 million
** Cash flow for the year was $350.162 million
** Free Cash flow per share was $1.18
** Gross margins were 69%
** Operating margins were 7%
** Stock-based compensation for the quarter was $28.777 million up from $6.662 million
** Stock-based compensation for the year was $95.224 million
** Trading range between March 5th, 2020 and the present June 3rd, 2020 was $100.88 to $224.46: PE ratio range was 593.41 to 1320.35 : Cash flow yield range .53% to 1%: PS ratio range was 35.93 to 79.94:
** Special Note: The day after the report the stock went up $15.79, from $208.08 to $223.87
Income Statement:
Zm’s Revenue increased 169% YoY and 52% sequentially. It was profitable on a Gaap basis with $.09 cents in EPS this quarter compared to $.00 YoY. It has $.17 cents EPS for the year. It’s Gaap Gross Margins dropped 11 percent YoY from 80% down to 69% due to all of the people that were coming onto and using their product. They had to leverage the Cloud providers to meet this extraordinary demand, which many of them were free users. They also gave k-12 schools free use of Zoom. Their Operating Margins were up 6 percent from 1% to 7% YoY. The analysts are saying this is the best earnings report they have ever seen for any company.
Rev and Share Count in Millions
Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
Rev $74,526 $90,121 $105,800 $121,988 $145,826 $166,593 $188,251 $328,167
Rev Gr 95.67% 84.85% 77.93% 169.02%
EPS $.00 -$.01 $.01 $.00 $.02 $.01 $.05 $.09
N(EPS) $.02 $.01 $.04 $.03 $.08 $.09 $.15 $.20
Shares 108.5M 111.0M 116.7M 136.4M 292.2M 292.8M 292.8M 295.2M
Here are the numbers for margins and Operating expenses as a percentage of Revenues.
Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
Cos Of Rev 17% 19% 19% 20% 19% 19% 17% 32%
GM 83% 81% 82% 80% 81% 82% 83% 69%
R&D 10% 10% 10% 11% 10% 11% 11% 8%
S&M 55% 59% 52% 52% 55% 58% 54% 37%
G&A 14% 13% 14% 15% 14% 14% 13% 16%
OM 5% -1% 5% 1% 2% -1% 8% 7%
Balance Sheet:
The Balance sheet was stronger this quarter with $1.105 billion in cash and no debt. Each quarter the cash grows on the balance sheet. Deferred Revenue was $552 million up 270% YoY and Remaining Performance Obligation ( RPO) totaled approximately $1.1 Billion up 184% from $377 Million YoY. They expect to realize 72% or $772 million of the RPO over the next 12 months. At this point they have $548 million in Revenue Backlog (RPO - Deferred Revenue = Revenue Backlog)
All numbers in millions
Q220 Q320 Q420 Q121
Cash $755.3 $811.4 $855.2 $1,105.4
Debt $0 $0 $0 $0
RPO $458.0 $517.0 $604.0 $1,100.0
Def Rev $277.0 $315.0 $373.0 $548.2
https://www.fool.com/investing/2018/06/26/a-new-metric-provi…
Cash Flow Statement:
They had $251.7 million in FCF this quarter. This was the biggest quarter yet. They also have been FCF positive every quarter since becoming public. Also they had $28.8 million in stock based compensation which is 9 percent of revenue for the quarter. For a company growing this fast and this profitable that seems to be very equitable for investors.
Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
FCF $8,174 $10,137 $5,680 $15,339 $17,132 $54,735 $26,602 $251,693
Stock Comp $1,126 $2,652 $4,314 $6,662 $18,075 $21,795 $26,577 $28,777
Stock Cmp% 1.5% 2.9% 4.1% 5.5% 12.4% 13.1% 14.12% 8.8%
Conclusion:
What a quarter. This was really amazing to see, although it was partially due to a pandemic accelerating the use of Zoom. They expect $500 million in Revenue next quarter, which they will most likely easily beat, and they expect Non-Gaap earnings of $.44 cents. This company is very expensive, but they are really a cash machine and with all that money they could come up with a lot more ways to increase Revenue. They are introducing Zoom Phone which will probably bring down their Gross Margins (I want to see exactly how the product is integrated). They had to rely on AWS to provision thousands of servers for multiple days to supply the demand for their product. (Think of that). Oracle’s CEO made a video to zoom asking them to do the right thing and also offered Oracle cloud support, which they took advantage of, and provisioned servers in Oracles cloud. (Which I thought was amazing. Another CEO taking the time to create a video encouraging another company.) I look at the Marketcap of this company and think just how much bigger can it really get? But then I look at what Zm has done so far and what their CEO has done and decided to trust in the management so I added more after this quarter. If you haven’t read the 10Q and the CC Transcript you really need to.
Some final numbers:
Q220 Q320 Q420 Q121
CM10 66300 74100 81900 265400
Cust100 466 546 641 769
CM10 = Customers with more than 10 employees.
Cust100 =Number of customers contributing more than 100,000 in TTM Revenue.
Historic Numbers
September 5th, 2019 2Q:2020 earnings highlights:
** Revenue was $145.826 million up 95.7% from $ 74.5 million
** TTM Revenue was $463.735 million
** TTM Revenue per share was $1.59 per share
** Earnings were $.02 up from $.00
** TTM earnings $.02 per share
** Diluted share count 292,185,665 million
** Cash $755.266 million: Debt $0
** Cash flow for the quarter was $17.132 million up from $8.174 million YoY.
** TTM cash flow was $48.288 million
** FCF per share was $.17
** Gross margins were 81%
** Operating margins were 2%
** Stock-based compensation for the quarter was $18.075 million up from $1.126 million
** Stock based compensation for the year was $31.7 million
** The trading range between June 7th, 2019 and September 6th, 2019 was $84.86 to $107.34: PE ratio range 4,243 to 5,367: Cash flow yield range .20% to .16%: PS ratio range 50.94 to 67.63:
** Special Note: The price dropped $7.28 the day after the report from $92.69 to $85.41 on September 6th 2019
December 5, 2019 3Q:2020 earnings highlights:
** Revenue was $166.593 million up from $90.121 million
** TTM revenue was $540.217 million
** TTM Revenue per share was $1.85 per share
** 3Q earnings was $.01 up from ($0.01) per share
** YoY earnings were $.04 per share
** Diluted share count 292,771,122 million
** Cash $811,400 million: debt $0 million
** Free Cash flow for the quarter was $54.735 million up from $10.137 million
** Free Cash flow for the year was $92.866 million
** FCF per share was $.32
** Gross margins were 82%
** Operating margins were -1%
** Stock-based compensation for the quarter was $21.795 million up from $2.652 million
** Stock-based compensation for the year was $50.846 million
** Trading range between September 6th, 2019 and December 6th, 2019 was $60.97 to $96.50: : PE ratio range 1524.25 to 2412.5: Cash flow yield range .33% to .52% : PS ratio range was 33.04 to 52.30:
** Special Note: The stock price fell $6.93 the day after the report From $69.67 to $62.74 on December 6th,2019
March 4th , 2020 4Q:2020 earnings highlights:
** Revenue was $188.251 million up 77.93% from $105.800 million
** TTM revenue was $622.658 million up 130% from $270.447 million
** TTM Revenue per share was $2.13 per share
** 4Q earnings was $.05 up from $.01 per share
** Fiscal 2020 earnings were $.08 per share
** Diluted share count 292,789,235 million
** Cash $855.194 Million: debt $0
** Cash flow for the quarter was $26.6 million up from $5.7 million
** Cash flow for the year was $113.808 million
** FCF per share was $.39 cents
** Gross margins were 83%
** Operating margins were 8%
** Stock-based compensation for the quarter was $26.6 million up from $4.3 million
** Stock-based compensation for the year was $73.1 million
** Trading range between December 6th, 2019 and the present March 5th, 2020 was $62.02 to 129.83: PE ratio range 775.25 to 1622.87: Cash flow yield range .30% to .63% : PS ratio range was 29.16 to 61.05:
** Special Note: The day after the report the stock went up $8.20, from $116.80 to $125.00
June 2nd, 2020 1Q:2021 earnings highlights:
** Revenue was $328.167 million up 169.02% from $121.988 million
** TTM revenue was $828.837 Million
** TTM Revenue per share was $2.81 per share
** 1Q earnings was $.09 up from $.00 per share
** TTM Earnings were $.17
** Diluted share count 295,184,948 million
** Cash $1.105 billion: debt $0 million
** Free Cash flow for the quarter was $251.693 million up from $15.339 million
** Cash flow for the year was $350.162 million
** Free Cash flow per share was $1.18
** Gross margins were 69%
** Operating margins were 7%
** Stock-based compensation for the quarter was $28.777 million up from $6.662 million
** Stock-based compensation for the year was $95.224 million
** Trading range between March 5th, 2020 and the present June 3rd, 2020 was $100.88 to $224.46: PE ratio range was 593.41 to 1320.35 : Cash flow yield range .53% to 1%: PS ratio range was 35.93 to 79.94:
** Special Note: The day after the report the stock went up $15.79, from $208.08 to $223.87
Andy