Zoom Video (ZM) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates

Zoom Video Communications (ZM) reported $1.14 billion in revenue for the quarter ended April 2024, representing a year-over-year increase of 3.3%. EPS of $1.35 for the same period compares to $1.16 a year ago.

The reported revenue represents a surprise of +1.41% over the Zacks Consensus Estimate of $1.13 billion. With the consensus EPS estimate being $1.19, the EPS surprise was +13.45%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Zoom Video performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Enterprise Customers: 191,000 compared to the 223,328 average estimate based on four analysts.
  • Customers >$100K TTM Revenue: 3,883 versus 3,957 estimated by three analysts on average.
  • Remaining Performance Obligations (RPO): $3.67 billion versus the three-analyst average estimate of $3.64 billion.
  • Current Remaining performance obligation (RPO): $2.18 billion compared to the $2.15 billion average estimate based on two analysts.
  • Non-Current Remaining performance obligation (RPO): $1.49 billion versus the two-analyst average estimate of $1.54 billion.
  • Geographic Revenue- Asia Pacific(APAC): $138 million versus $140.20 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2.1% change.
  • Geographic Revenue- Europe, Middle East, and Africa(EMEA): $184 million versus $171.59 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +2.2% change.
  • Geographic Revenue- Americas: $819 million compared to the $813.89 million average estimate based on two analysts. The reported number represents a change of +4.3% year over year.
View all Key Company Metrics for Zoom Video here>>>

Shares of Zoom Video have returned +7.9% over the past month versus the Zacks S&P 500 composite's +5.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.