Zoom Video Communications
Market Cap
US$28.1b
Last Updated
2020/02/24 03:26 UTC
Data Sources
Company Financials +
Executive Summary
Zoom Video Communications, Inc. provides a video-first communications platform that delivers changes how people interact primarily in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -104.4% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet with acceptable track record.
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
11.9%
ZM
-2.7%
US Software
-1.1%
US Market
1 Year Return
n/a
ZM
35.1%
US Software
17.8%
US Market
Return vs Industry: Insufficient data to determine how ZM performed against the US Software industry.
Return vs Market: Insufficient data to determine how ZM performed against the US Market.
Shareholder returns
| ZM | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.9% | -2.7% | -1.1% |
| 30 Day | 39.4% | 5.5% | 1.5% |
| 90 Day | 35.4% | 12.6% | 6.6% |
| 1 Year | n/a | 36.5%35.1% | 20.2%17.8% |
| 3 Year | n/a | 145.5%135.2% | 47.5%38.1% |
| 5 Year | n/a | 212.4%190.0% | 71.2%52.4% |
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
3 weeks ago | Simply Wall St
A Look At The Fair Value Of Zoom Video Communications, Inc. (NASDAQ:ZM)1 month ago | Simply Wall St
What Type Of Shareholder Owns Zoom Video Communications, Inc.'s (NASDAQ:ZM)?2 months ago | Simply Wall St
Why Zoom Video Communications, Inc.’s (NASDAQ:ZM) Use Of Investor Capital Doesn’t Look GreatValuation
Is Zoom Video Communications undervalued compared to its fair value and its price relative to the market?
2540.38x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ZM ($101.76) is trading above our estimate of fair value ($87.8)
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 (2540.4x) compared to the Software industry average (49.4x).
PE vs Market: ZM is poor value based on its PE Ratio (2540.4x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: ZM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ZM is overvalued based on its PB Ratio (36.4x) compared to the US Software industry average (5.9x).
Next Steps
Future Growth
How is Zoom Video Communications forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
-104.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ZM's earnings are forecast to decline over the next 3 years (-104.4% per year).
Earnings vs Market: ZM's earnings are forecast to decline over the next 3 years (-104.4% per year).
High Growth Earnings: ZM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ZM's revenue (27.7% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: ZM's revenue (27.7% 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 low in 3 years time (7.4%).
Next Steps
Past Performance
How has Zoom Video Communications performed over the past 5 years?
89.3%
Last years revenue growth
Earnings and Revenue History
Quality Earnings: ZM has high quality earnings.
Growing Profit Margin: ZM became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: ZM has become profitable over the past 5 years, growing earnings by 0% per year.
Accelerating Growth: ZM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: ZM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (18.4%).
Return on Equity
High ROE: ZM's Return on Equity (2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Zoom Video Communications's financial position?
Financial Position Analysis
Short Term Liabilities: ZM's short term assets ($1.0B) exceed its short term liabilities ($317.8M).
Long Term Liabilities: ZM's short term assets ($1.0B) exceed its long term liabilities ($97.7M).
Debt to Equity History and Analysis
Debt Level: ZM is debt free.
Reducing Debt: ZM had no debt 5 years ago.
Balance Sheet
Inventory Level: ZM has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if ZM's debt is covered by short term assets.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: ZM is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: ZM is profitable, therefore cash runway is not a concern.
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 payouts.
High Dividend: Unable to evaluate ZM's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
1.9yrs
Average management tenure
CEO
Eric Yuan (49yo)
8.7yrs
Tenure
US$3,025,000
Compensation
Mr. Eric S. Yuan is the Founder of Zoom Video Communications, Inc. and serves as its Chairman of the board, President and Chief Executive Officer since June 2011 and also serves as its Secretary. Mr. Yuan ...
CEO Compensation Analysis
Compensation vs Market: Eric's total compensation ($USD3.03M) is below average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 8.7yrs | US$3.03m | 11.15% $3.1b | |
| Chief Legal Officer | 1.4yrs | US$1.79m | 0.10% $29.1m | |
| Chief Marketing Officer | 0.9yrs | US$2.15m | 0.068% $19.2m | |
| Chief Financial Officer | 2.3yrs | no data | 0.017% $4.8m | |
| Chief Accounting Officer & Treasurer | 0yrs | no data | 0.080% $22.5m | |
| Global Chief Information Officer | 1.9yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Head of Business Development | 0yrs | no data | no data | |
| Chief People Officer | 0yrs | no data | no data | |
| Head of Global Services | 0yrs | no data | no data |
1.9yrs
Average Tenure
45yo
Average Age
Experienced Management: ZM's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 8.7yrs | US$3.03m | 11.15% $3.1b | |
| Board Observer | 0yrs | no data | no data | |
| Independent Director | 6.5yrs | no data | 0.031% $8.7m | |
| Lead Independent Director | 0yrs | US$724.00k | 0.99% $279.5m | |
| Independent Director | 3.3yrs | no data | 0.047% $13.3m | |
| Independent Director | 2.4yrs | no data | 0.14% $40.7m | |
| Independent Director | 4.3yrs | no data | 0.44% $122.4m | |
| Independent Director | 5.2yrs | no data | 0.015% $4.1m | |
| Independent Director | 1.4yrs | US$861.00k | no data |
4.3yrs
Average Tenure
52.5yo
Average Age
Experienced Board: ZM's board of directors are considered experienced (4.3 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: ZM only recently listed within the past 12 months, with total shares outstanding growing by 125.1% in the past year..
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$28.127b
- Shares outstanding: 276.40m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ZM | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Apr 2019 |
| ZOOM | WBAG (Wiener Boerse AG) | Yes | Class A Common Stock | AT | EUR | Apr 2019 |
| 0A1O | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Apr 2019 |
| 5ZM | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Apr 2019 |
Biography
Zoom Video Communications, Inc. provides a video-first communications platform that delivers changes how people interact primarily in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It connects people through frictionless video, voice, chat, and content sharing. The company’s cloud-native platform enables face-to-face video experiences and connects users across various devices and locations in a single meeting. It serves education, entertainment/media, enterprise infrastructure, finance, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries, as well as individuals. 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 03:26 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/10/31 |
| Annual Earnings | 2019/01/31 |
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.