Key Takeaways

  • The number of Zoom customers contributing over $100,000 in trailing-12-month revenue surpassed analysts' estimates.
  • Large-contract customers contributing more than $100,000 in annual revenue are usually a more stable source of revenue than smaller-contract customers.
  • Zoom expects Q3 FY 2022 adjusted EPS of between $1.07 and $1.08 on approximately $1.0 billion of revenue.
Zoom Earnings Results
Metric  Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted Earnings Per Share Beat $1.36 $1.16
Revenue Beat $1,021.5M $990.3M
Customers Contributing Over $100K in 12-month Trailing Revenue Beat 2,278 2,169

Source: Predictions based on analysts' consensus from Visible Alpha

Zoom (ZM) Financial Results: Analysis

Zoom Video Communications, Inc. (ZM) reported Q2 FY 2022 earnings that beat analysts' expectations. Adjusted earnings per share (EPS) came in above analyst forecasts, rising 47.8% year over year (YOY). Zoom's revenue surpassed analyst estimates, climbing 54.0% YOY to achieve more than $1 billion in quarterly revenue for the first time. The number of customers contributing $100,000 in trailing-12-month (TTM) revenue also exceeded consensus estimates. The company's shares were down as much as 8% at one point in after-hours trading. Over the past year, Zoom's shares have provided a total return of 6.9%, well below the S&P 500's total return of 29.4%.

ZM Customers Contributing Over $100K in Trailing-12-Month Revenue

The number of Zoom's customers contributing over $100,000 in TTM revenue rose 130.6% YOY. The size of this customer group provides a measure of two key capabilities: Zoom's ability to scale its offerings to its users' needs, and the company's ability to attract larger organizations to its platform. Large customers are likely to be a more stable source of revenue compared to individuals or smaller organizations, who may switch more frequently to other video conferencing services. Securing contracts with large enterprises will be especially important as the global economy emerges from the pandemic and as many people begin returning to their company offices to work.

ZM Forward Guidance

Zoom provided guidance for Q3 FY 2022 and for full-year FY 2022. The company expects total revenue in the third quarter to be approximately $1.0 billion. It expects adjusted EPS to be between $1.07 and $1.08. For full-year FY 2022, Zoom expects total revenue to be approximately $4.0 billion. Annual adjusted EPS for the year is expected to be between $4.75 and $4.79, up from the company's adjusted EPS forecast provided in its Q1 FY 2022 earnings report.

Zoom's next earnings report (for Q3 FY 2022) is estimated to be released on Nov. 29, 2021.