Cloud Stocks: Zoom Should Report Developer Ecosystem Metrics

It has been more than a year now since the world started working remotely. Online video conferencing services such as those offered by Zoom Video Communications (Nasdaq: ZM) have helped organizations and educational institutions globally manage these unprecedented working conditions. Zoom recently announced its quarterly results that continued to outpace market expectations.

Zoom’s Financials

Revenues for the fourth quarter grew 369% to $882.5 million, shattering the market’s forecast of $810.56 million. Excluding items, Zoom reported an EPS of $1.22, again beating analysts’ estimate of $0.79.

Among key metrics, Zoom now has more than 467,100 customers with over 10 employees, a growth of 470% over the year. Customers contributing over $100,000 in trailing twelve-month revenues grew 156% to 1,644.

For the fiscal year, Zoom reported revenues of $2.7 billion, growing 326% and an EPS of $3.34.

It forecast revenues of $900-$905 million for the first quarter of FY22 with an EPS of $0.95-$0.97. It expects to end the fiscal year 2022 with revenues of $3.76-$3.78 billion and an EPS of $3.59-$3.65. The market was looking for revenues of $904.12 million and an EPS of $0.98 for the Q122 and revenues of $3.83 billion and an EPS of $3.72 for FY22.

Zoom’s Growth Focus

Zoom recently released a new set of software-hardware integrations to launch Zoom Rooms. Zoom Rooms will help organizations safely transition back to the office while allowing them to maintain a remote working capability. Many organizations adopted a virtual working environment in response to the pandemic. But after more than a year of working remotely, some organizations and employees are wanting to make this a permanent routine. Zoom Rooms will allow the organizations to remain connected with their employees, irrespective of where they work out of. Some of the features included are dashboards of real-time people count data and a contactless virtual receptionist mode to help facilitate the transition to hybrid work.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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