NasdaqGS:ZM

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Zoom Video Communications

Executive Summary

Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

How has Zoom Video Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.0%

ZM

3.7%

US Software

1.3%

US Market


1 Year Return

194.9%

ZM

38.3%

US Software

6.1%

US Market

Return vs Industry: ZM exceeded the US Software industry which returned 37.9% over the past year.

Return vs Market: ZM exceeded the US Market which returned 6.7% over the past year.


Shareholder returns

ZMIndustryMarket
7 Day3.0%3.7%1.3%
30 Day31.2%12.4%-0.3%
90 Day116.5%35.0%16.6%
1 Year194.9%194.9%39.3%38.3%8.4%6.1%
3 Yearn/a157.0%148.2%35.8%26.9%
5 Yearn/a249.4%228.7%62.7%44.7%

Price Volatility Vs. Market

How volatile is Zoom Video Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zoom Video Communications undervalued compared to its fair value and its price relative to the market?

1532.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZM ($269.52) is trading above our estimate of fair value ($92.02)

Significantly Below Fair Value: ZM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZM is poor value based on its PE Ratio (1532x) compared to the Software industry average (54.4x).

PE vs Market: ZM is poor value based on its PE Ratio (1532x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: ZM is poor value based on its PEG Ratio (34.1x)


Price to Book Ratio

PB vs Industry: ZM is overvalued based on its PB Ratio (84.3x) compared to the US Software industry average (6.9x).


Next Steps

Future Growth

How is Zoom Video Communications forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

45.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZM's forecast earnings growth (45% per year) is above the savings rate (2.2%).

Earnings vs Market: ZM's earnings (45% per year) are forecast to grow faster than the US market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ZM's revenue (24.5% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: ZM's revenue (24.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZM's Return on Equity is forecast to be high in 3 years time (28.6%)


Next Steps

Past Performance

How has Zoom Video Communications performed over the past 5 years?

109.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZM has high quality earnings.

Growing Profit Margin: ZM's current net profit margins (5.9%) are higher than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: ZM's earnings have grown significantly by 109.4% per year over the past 5 years.

Accelerating Growth: ZM's earnings growth over the past year (2984.5%) exceeds its 5-year average (109.4% per year).

Earnings vs Industry: ZM earnings growth over the past year (2984.5%) exceeded the Software industry 7.9%.


Return on Equity

High ROE: ZM's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Zoom Video Communications's financial position?


Financial Position Analysis

Short Term Liabilities: ZM's short term assets ($1.8B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: ZM's short term assets ($1.8B) exceed its long term liabilities ($132.4M).


Debt to Equity History and Analysis

Debt Level: ZM is debt free.

Reducing Debt: ZM had no debt 5 years ago.

Debt Coverage: ZM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ZM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Zoom Video Communications's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ZM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ZM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ZM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Eric Yuan (50yo)

9.08yrs

Tenure

US$320,826

Compensation

Mr. Eric S. Yuan is the Founder of Zoom Video Communications, Inc. and serves as its Chairman of the board, President and Chief Executive Officer since June 2011 and also serves as its Secretary. Mr. Yuan  ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD320.83K) is below average for companies of similar size in the US market ($USD11.49M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eric Yuan
Founder9.08yrsUS$320.83k15.62% $11.9b
Kelly Steckelberg
Chief Financial Officer2.67yrsUS$408.53k0.00049% $372.6k
Ryan Azus
Chief Revenue Officer0.92yrUS$28.90mno data
Aparna Bawa
COO & Secretary0.17yrUS$1.79m0.084% $63.9m
Roy Benhorin
Chief Accounting Officer & Treasurerno datano data0.079% $59.8m
Brendan Ittelson
Chief Technology Officer0.50yrno datano data
Harry Moseley
Global Chief Information Officer2.33yrsno datano data
Tom McCallum
Head of Investor Relationsno datano datano data
Lynn Haaland
Chief Compliance & Ethics Officer0.25yrno datano data
Janine Pelosi
Chief Marketing Officer1.33yrsUS$2.15m0.00049% $372.6k

1.1yrs

Average Tenure

45yo

Average Age

Experienced Management: ZM's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Eric Yuan
Founder9.08yrsUS$320.83k15.62% $11.9b
Sachin Deshpande
Board Observerno datano datano data
Bart Swanson
Independent Director6.92yrsno data0.014% $10.3m
Daniel Scheinman
Lead Independent Directorno dataUS$50.63k0.97% $740.2m
Carl Eschenbach
Independent Director3.67yrsno data0.023% $17.6m
Jonathan Chadwick
Independent Director2.83yrsUS$37.50k0.099% $75.5m
Peter Gassner
Independent Director4.75yrsUS$119.18k0.43% $324.6m
Santiago Subotovsky
Independent Director5.58yrsno data0.078% $59.3m
Kimberly Hammonds
Independent Director1.83yrsUS$25.13kno data
Herbert McMaster
Independent Director0.17yrno data0.000040% $30.4k

4.2yrs

Average Tenure

54yo

Average Age

Experienced Board: ZM's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

Zoom Video Communications, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zoom Video Communications, Inc.
  • Ticker: ZM
  • Exchange: NasdaqGS
  • Founded: 2011
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$76.032b
  • Shares outstanding: 282.10m
  • Website: https://www.zoom.us

Number of Employees


Location

  • Zoom Video Communications, Inc.
  • 55 Almaden Boulevard
  • 6th Floor
  • San Jose
  • California
  • 95113
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZMNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDApr 2019
ZOOMWBAG (Wiener Boerse AG)YesClass A Common StockATEURApr 2019
0A1OLSE (London Stock Exchange)YesClass A Common StockGBUSDApr 2019
5ZMDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2019
ZM *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNApr 2019

Biography

Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company’s product portfolio includes Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system that provides secure call routing, call queuing, call detail reports, call recording, call quality monitoring, voicemail, switch to video, and other services, as well as inbound and outbound calling services; and Zoom Chat enables sharing messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices for meeting and phone customers. It also offers Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; and Zoom Video Webinars enables users to conduct large-scale online events, such as town hall meetings, workshops, and marketing presentations. In addition, the company provides Zoom for Developers that allows developers to integrate its video, phone, chat, and content sharing into other applications, as well as manages Zoom accounts; and Zoom App Marketplace enhance developers to publish their apps. It serves education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries, as well as individuals. Zoom Video Communications, Inc. has partnership with ServiceNow. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. Zoom Video Communications, Inc. was founded in 2011 and is headquartered in San Jose, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 23:52
End of Day Share Price2020/07/09 00:00
Earnings2020/04/30
Annual Earnings2020/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.