Zoom Video Communications First Quarter 2025 Earnings: Beats Expectations

Zoom Video Communications (NASDAQ:ZM) First Quarter 2025 Results

Key Financial Results

• Revenue: US$1.14b (up 3.2% from 1Q 2024).
• Net income: US$216.3m (up by US$200.9m from 1Q 2024).
• Profit margin: 19% (up from 1.4% in 1Q 2024). The increase in margin was primarily driven by lower expenses.
• EPS: US$0.70 (up from US$0.052 in 1Q 2024).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Zoom Video Communications Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 62%.

Looking ahead, revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Software industry in the US.

Performance of the American Software industry.

The company's shares are down 1.8% from a week ago.

Valuation

Our analysis of these results suggests Zoom Video Communications may be undervalued based on 6 important criteria we look at. To explore our complete evaluation click here and get an understanding of what analysts are thinking about the company's future.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.