Zoom Video (ZM), whose company became a verb (for “Zoom” meetings) during the pandemic, posted first-quarter results that markets did not like. The non-GAAP results hide the generous $229.4 million stock-based compensation in the quarter.
In Q1, the firm posted revenue of $1.14 billion, up by 2.7% Y/Y. Non-GAAP EPS was $1.35. Non-GAAP diluted EPS for Q2 is $1.20 - $1.21. Zoom expects to report total revenue of up to $4.62 billion. For FY 2025, it expects EPS of $4.99 - $5.02 (non-GAAP).
In the shipping sector, short-sellers will watch ZIM Integrated Shipping (ZIM). Bears hold a 22.55% short float against the stock. This morning’s earnings report should move ZIM stock either way.
In the artificial intelligence sector, Microsoft’s (MSFT) announcement for the new Copilot+ on PCs is a non-event. The software giant wants customers to pick its Surface tablets over Apple’s (AAPL) hardware. Although OpenAI’s GPT-4o model runs on the PC through text, video, and voice, most of the processing power is on the cloud servers.
PC sales remain anemic, albeit growing by 1.5% in Q1, according to IDC. Sales fell for two years before that.
Watch Nvidia (NVDA) ahead of its earnings report tomorrow after the market closes. Tech investors are closely watching the supplier of GPUs that power AI. Strong results, would lift Microsoft shares.
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