ZM - Zoom Video Communications Inc Stock Price Quote - NASDAQ | Morningstar
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Why Shares of Zoom Video Spiked Today | The Motley Fool.Zoom Video Communications - Stock Price History | ZM | MacroTrends
The company just reported its latest quarterly result which beat expectations with positive operating metrics. At the same time, we highlight some ongoing growth concerns against what has evolved into a more competitive operating environment, particularly as Zoom looks to branch out into new business segments beyond just video. The stock likely has some upside in the near term but will continue to face long-term uncertainties so caution is warranted.
On the other hand, the geopolitical conflict in Europe pressured the EMEA region which was flat compared to fiscal The lower bottom line this quarter considers what has been a new effort at investments and spending to support the next stage of growth. Similarly, sales and marketing efforts have also seen a big jump as part of the strategy to expand internationally.
The result is an impact on profitability as the non-GAAP operating margin at Company IR. Through the subscription model, the strength here is the recurring business with a move towards longer-term plans and a larger total of billions per customer. Anecdotally, the corporate and enterprise-level customers as a group generating this much sales are likely those that have chosen Zoom as their preferred video communications service provider and utilize the platform as a necessary day-to-day tool.
Our interpretation is that this metric adds a layer of quality to Zoom financials as the company becomes less dependent on smaller individual users that are less predictable in terms of month-to-month renewals. Another key financial metric for the company is the remaining performance obligations RPO which is defined as the combination of unbilled and deferred revenue yet to be recognized.
A question among investors that often gets brought up is how the company intends to utilize that proverbial war chest. On this point, into Q2 in May, Zoom announced the acquisition of "Solvvy", a leading artificial intelligence-based customer support platform. The thinking here is that there are synergies between Zoom's core unified communications product and customer experience solutions.
Major companies already using Solvvy include Vimeo, Inc. While the deal terms were not disclosed, it's likely the value of the transaction was only a small part of Zoom's liquidity, suggesting there is room for more corporate actions down the line. The deal also enhances other Zoom initiatives and new product features discussed during the earnings conference call :.
A key part of our strategy is to enable more and more business workflows within our platform, and I am super excited about our recent launches of Zoom Whiteboard and Zoom IQ for Sales. Zoom Whiteboard is arming teams with the power of continuous collaboration in an easy-to-use solution that provides a virtual space to collaborate before, during, and after a meeting. Again, the trend here reflects higher investment spending with a lower operating margin.
If anything, the recent financials are strong enough to brush away fears of an unraveling operating environment or any concerns that customers were abandoning the platform. The context here also considers the broader market trading action with stocks and tech names getting a bounce in recent weeks against what has been extreme volatility all year.
Price to book. Return on assets. Return on capital. Cash from operations. Net cash used or generated for core business activities. Cash from investing. Net cash used or generated in investing activities such as purchasing assets. Cash from financing. Net cash used or generated in financing activities such as dividend payments and loans.
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Listed exchange for this security. Zoom Video Communications, Inc. It provides videotelephony and online chat services through a cloud-based peer-to-peer software platform used for video communications, messaging, voice calls, conference rooms for video meetings, virtual events and contact centers, and offers an open platform allowing third-party developers to build custom applications on its unified communications platform.
Eric Yuan, a former Cisco engineer and executive, founded Zoom in , and launched its software in The company first became profitable in , and completed an initial public offering that year.
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