Zoom Video (NASDAQ:ZM) is a San Jose-based unified communications platform that operates in North America and all around the world. The video service rose to prominence over the course of the COVID-19 pandemic as remote work became prevalent due to viral containment policies. Shares of Zoom have dropped 7.3% so far in 2024 as of close on Monday, May 20, 2024. The stock is down 10% compared to the prior year.5 How does the stock look after the company released its first batch of fiscal 202 earnings?
On Monday, May 20th, Zoom Video Communications released its first quarter (Q1) fiscal 2025 earnings. The company reported total revenue of $1.14 billion in Q1 FY2025, which was up 3.2% compared to the prior year. Meanwhile, Enterprise revenue climbed 5.3% year-over-year to $665 million. Zoom’s operating cash flow soared 40.6% year-over-year to $588 million.
In the first quarter, Zoom founder and CEO Eric S. Yuan said that “We continued to integrate AI across our platform including Zoom Contact Center and Zoom Workplace, an AI-powered collaboration platform that provides customers the ability to reimagine teamwork by streamlining communications, increasing employee engagement, and improving productivity within their organizations.”
Looking ahead, Zoom Video is projecting Q2 FY2025 revenue between $1.14 billion and $1.15 billion and non-GAAP net income from operations between $415 million and $420 million. For the full year, the company expects total revenue between $4.61 billion and $4.62 billion and non-GAAP net income from operations between $1.74 billion and $1.75 billion.
Shares of Zoom Video currently possess a price-to-earnings ratio of 31, which puts the tech stock in favourable value territory compared to its industry peers at the time of this writing.
Tech Insider
