Did You Know Zoom Video Has Beat Earnings Every Quarter Since Its IPO? Here's What Else You Need To Know Before The Q4 Report

Zinger Key Points
  • Zoom is expected to report fourth-quarter earnings of 80 cents per share on revenue of $1.1 billion.
  • At the end of Q3, Zoom said it was set to finish the year with full-year revenue growth, as well as strong profitability and free cash flow.

Zoom Video Communications Inc ZM is set to report fourth-quarter financial results after the bell. Despite being up approximately 10% year-to-date, the stock is still down more than 43% over the last year

Here's a look at what to expect from the innovative communications company after the close. 

What To Know Ahead Of Q4 Earnings: Zoom is expected to report fourth-quarter earnings of 80 cents per share on revenue of $1.1 billion, according to estimates from Benzinga Pro.

Although the stock is well off the highs it made in late 2020 during the height of the COVID-19 pandemic, the company has delivered an upside earnings surprise in every quarter since it went public in April 2019.

In the company's most recent quarter, Zoom reported quarterly earnings of $1.07 per share, easily beating estimates of 84 cents per share. The bar is set even lower for the fourth quarter and Zoom said it was seeing significant momentum in Enterprise at the end of the third quarter.

In addition, operating income came in meaningfully higher than Zoom's prior outlook. As a result, the company noted that it was set up "to finish the year with full-year revenue growth, strong GAAP and non-GAAP profitability, and free cash flow that we expect to be at the high end of our range of $1 billion to $1.15 billion."

In the comparable quarter from the end of 2021, Zoom reported earnings of $1.29 per share on quarterly revenue of $1.071 billion, so although analysts are anticipating a slight bump in revenue, expectations are set for a year-over-year decline on Zoom's bottom line. 

Zoom was one of the biggest beneficiaries of the pandemic as more and more people were forced to work together remotely as a result of lockdown restrictions. However, the stock has given up essentially all of its gains from the boom.

Although broader investor sentiment has soured, there are many who believe Zoom stands to revolutionize the way individuals connect and communicate.

Speaking on CNBC's "Squawk On The Street" Monday morning, Ark Invest founder and CEO Cathie Wood highlighted Zoom's strong patent portfolio, which shows the forward-looking nature of the company.

"Almost half of them are around artificial intelligence," Wood said. 

She noted Zoom is likely to unveil new products in the coming months and years centered around AI. Investors will want to watch closely for any new updates in the space. 

Check This Out: Cathie Wood Continues To Bulk Up On This Crypto-Linked Stock

ZM Price Action: Zoom has traded in a range of $63.55 to $136 over a 52-week period. 

The stock was down 0.14% at $73.83 Monday afternoon ahead of the print, according to Benzinga Pro.

Photo: Courtesy of Zoom.

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Posted In: EarningsNewsPreviewsTrading IdeasAICathie WoodCovid-19remote working
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