Zoom Numbers Collected

Investment Analysis Clubs Saul’s Investing Discussions
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Hello all. My daughter has taken an interest in stocks, so I am trying to teach her about how to look at the numbers. We gathered the following on ZM, and it is pretty obvious why this is such an attractive company right now. I only wonder about the margin decrease in the first quarter. I wonder if that was due to the influx of free users and also the security expenses? I couldn’t find the RPO for most of 2019. I think they only started reporting that in 2020.

I plan to do the same with a more standard company to be able to compare the revenue growth rates, etc. Maybe Disney or something she would be familiar with. I think MDB is involved with Epic Games which she is familiar with through Fortnite. I think she would also be interested in Microsoft as she knows the Hololense. Any of those could be good ones to look at the numbers for. We already talked about Fastly and she was interested in the edge computing and data gathering with 5G, but neither of us really understands it.

Anyway, I hope to make this into something that could keep her interest for a while and she could also be a better trader than I am later on in her life.

I am not sure about the formatting, but hopefully it looks OK here.

Anyway, thanks for the information on this board. I am hoping it will help out my kids as much as it has helped me. I am up over 50% for the year, and that is no small feat.

ZM Numbers

6/2/2020

Revenue


Their revenue percentage growth looks like this:

2019:  103   95   85   78
2020:  169

Their revenue in millions

2019:  122   146   166   188
2020:  328

Adjusted Operating Income in Millions

2018:  -1   4.5   2   10
2019:  8    21    21  38
2020:  54

Adjusted Margin percentage

2019:  6.7   14.2   12.8   20.4
2020:  16.6

Adjusted Net Income in millions

2018:  0.5   5 	 2   10
2019:  9     24  25  43
2020:  58

EPS

2018:  .00   .02   .01  .04
2019:  .03   .08   .09  .15
2020:  .20

CASH in Millions

2019:  732   755   811   855
2020:  1100

Operating Cash Flow

2018:  3    14   18   16
2019:  22   31   62   37
2020:  259

Free Cash Flow in Millions

2018:  -1,  8, 	10,  	6
2019:  15,  17, 55,  	27
2020:  251

Customers with more than 10 Employees

Their percentage growth looks like this:
2019:  86,  78,  67,  61
2020:  354

>100,000 Customers

Their percentage growth looks like this:
2019:  120,  104,  97,  86
2020:  90

Net Dollar Expansion Rate > 10 Employees

Their percentage growth looks like this:
2019:  130,  130,  130,  130
2020:  130

Remaining Performance Obligation RPO in Millions

2019:  312, ?,  ?,  ?
2020:  604
28 Likes
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I am not sure about the formatting, but hopefully it looks OK here.

Use the “Preview Message” button before using the “Submit Message” button. This lets you view and edit, if necessary, before committing the post to eternity.

I’m curious, how old is your daughter? I suppose age would influence how you teach her. In any case, an early education in practical investing is a wonderful lifetime gift. In this digital, post industrial age, sound investing is the road to financial independence. Saul is a masterful teacher.

Denny Schlesinger

8 Likes
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This is great work, but I think you have to do like Saul and interpolate the numbers for the last quarter. The last six weeks were definitely better than the first six weeks. We know that users and subscriptions sky-rocketed during the last half of the quarter. What would next quarter look like if the entire three months are like the last six of last quarter?

Gordon

2 Likes
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I am also embarked on the same journey with my 15-year-old daughter.
When I first started, I thought it would be easier to focus on companies she is familiar with but now I think this is a flawed approach. The universe for companies she knows is too small and even if she knows the business, it doesn’t mean she understands the business.
I believe it’s better to target the fastest-growing businesses and then do our best to learn about and understand the business. We probably won’t even understand 25% but I’m not sure you need to fully understand the entire business to assess it’s value as a great investment.
Congrats on starting your journey with your daughter, I’m glad I did.

5 Likes
5

Happy to help you fill in some of those missing RPO numbers :slight_smile: Here is what I have -


Quarter    Q2	   Q3	   Q4	   Q1	   Q2	   Q3	   Q4	   Q1							
RPO	 $210.5  $256.0  $311.7  $376.5  $457.6  $517.0  $604.1  $1,067.9 
YoY Change % 			         117.4%	  102.0%  93.8%	  183.6%
2 Likes
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Hi Major,

***RPO is calculated differently for Slack than most companies as they don’t include monthly nor annual subscriptions. They only include multi-year deals explaining why the number is low compared to overall revenues. Monthly and annual are captured in deferred revenues that also grew wonderfully.
-Phoolio

Because Slack uses RPO to reflect all bookings of greater than one year. The actual sales activity for Slack is better reflected by its 97% year on year growth in RPO to $379 million, all of which represents obligations for more than a year. And I’m having difficulty putting together RPO comparables for Slack.

Is there any chance you’ve been able to work this out for Slack as you have for Zm?

Much appreciated for Zm either way,

Thanks,

Jason

3 Likes
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Thank you for the RPO numbers. I saw that my daughter and I had misplaced the 4th quarter into first quarter this year. We collected the first numbers from Saul’s post and then realized he had put out the numbers for 4th quarter as his monthly report was published a few days before June 2nd - a good lesson in itself. We had fixed all the others while collecting information from the earnings reports, but we didn’t ever see RPO again. Thank you for taking the time to supply the numbers.