Zoom reported quarterly earnings ending 1/31/2023 today after market close. Revenue was $1.12 billion vs. $1.10 billion expected. Adjusted EPS was $1.22 vs. $0.81 expected. Apparently, investors expected worse but the results are not that bad. ZM 0.00%↑ stocks soars after the report is out.
As mentioned previously, I believe investors are too negative about ZM 0.00%↑. Zoom has $5B+ of cash, $4B+ of annual revenue, and projects to make $1.5B of profits this year. Zoom’s market cap before the report was $21B, which is quite reasonable given its metrics. Sure, Zoom is facing a lot of macroeconomic headwinds at the moment but I think they have a rock solid business in the long run. Microsoft and Google’s VC offerings are not as good and I doubt they will focus in this area as they have other bigger fish to fry (i.e. AI). Zoom has the best UI, best video quality and they are leveraging their strengths into call centers and other areas. I am a proud shareholder and will patiently hold the stock. I think it will do well in the long run.