Zoom Video (ZM) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates

The upcoming report from Zoom Video Communications (ZM) is expected to reveal quarterly earnings of $1.19 per share, indicating an increase of 2.6% compared to the year-ago period. Analysts forecast revenues of $1.13 billion, representing an increase of 1.8% year over year.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

That said, let's delve into the average estimates of some Zoom Video metrics that Wall Street analysts commonly model and monitor.

Analysts expect 'Geographic Revenue- Asia Pacific(APAC)' to come in at $140.20 million. The estimate points to a change of -0.6% from the year-ago quarter.

The consensus among analysts is that 'Geographic Revenue- Europe, Middle East, and Africa(EMEA)' will reach $171.59 million. The estimate indicates a change of -4.7% from the prior-year quarter.

According to the collective judgment of analysts, 'Geographic Revenue- Americas' should come in at $813.89 million. The estimate points to a change of +3.7% from the year-ago quarter.

Analysts predict that the 'Enterprise Customers' will reach 223,328. Compared to the current estimate, the company reported 215,900 in the same quarter of the previous year.

Analysts forecast 'Customers >$100K TTM Revenue' to reach 3,957. The estimate is in contrast to the year-ago figure of 3,580.

The consensus estimate for 'Remaining Performance Obligations (RPO)' stands at $3.64 billion. The estimate is in contrast to the year-ago figure of $3.48 billion.

Based on the collective assessment of analysts, 'Current Remaining performance obligation (RPO)' should arrive at $2.15 billion. Compared to the present estimate, the company reported $2.04 billion in the same quarter last year.

Analysts' assessment points toward 'Non-Current Remaining performance obligation (RPO)' reaching $1.54 billion. The estimate compares to the year-ago value of $1.44 billion.

View all Key Company Metrics for Zoom Video here>>>

Zoom Video shares have witnessed a change of +7.2% in the past month, in contrast to the Zacks S&P 500 composite's +2.5% move. With a Zacks Rank #3 (Hold), ZM is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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