Zoom Video Communications (NASDAQ: ZM) is expected to release its earnings for the quarter ended July 2021 on August 30, 2021.
Zoom has topped earnings estimates in the past nine quarters
Stockearning’s Estimated EPS for the quarter is $0.82 per share. According to historical EPS performance, the company has in the last 12 quarters beat estimates nine times (100%) without any miss. In Q1 2021, the company topped earnings estimates of $0.62 and produced surprise earnings of $0.97.
Zoom reported better than anticipated Q1 2022 results, with sales growing 191% to $956.2 million compared to estimates of $906 million. The revenue grew from $328.2 million reported a year early, primarily attributed to increased users as the pandemic pushed people to teleconferencing. In addition, in Q1, Zoom saw its gross margin widen to 73.9%, mainly due to public cloud resources optimization.
For the second quarter, the company expects revenue ranging from $985 million to 990 million. For the full year, the company anticipates adjusted EPS of $4.56 to $4.61 on revenue of between $3.98 billion and $3.99 billion.
Since the last earnings release, Zoom shares have gained 4.1%. But in the past quarters, shares were DOWN in five out of nine quarters. Therefore, the historical price action indicates there is a 55% probability that shares will be DOWN after the earnings release. In addition, Stockearning's algorithm shows that the predicted first-day move is 9% after the earnings release, while the predicted movement is 12% after seven days.
JPMorgan analyst expects downward trends in the number of Zoom users
JPMorgan analyst Sterling Auty told investors that the download data for videoconferencing applications such as Zoom Video would continue to reflect downward trends that commenced last September. The analyst believes that students going into summer vacations and economies reopening are the reasons for the trends. Auty warns investors against making direct correlations on Zoom revenue, stating that it is hard to determine the number of users that have minimized activity to move to free offering or canceling seats in an account. At the end of July, Zoom's average daily active users were 44.3 million compared to 67.7 million in QA2 2020.
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