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Zoom Video Communications Inc ZM

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Enterprise Helps Zoom Deliver Good Results and Guidance; FVE Up to $260

Dan Romanoff, CPA Senior Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

We are raising our fair value estimate for narrow-moat Zoom after the company reported third-quarter results that exceeded the high end of guidance and provided a fourth quarter outlook that was also better than expected. The company's continued pivot to larger customers was evident this quarter, while Zoom Phone remained strong and churn continued to normalize. We remain impressed by Zoom’s ability to over-deliver simultaneously in terms of both growth and margins. We see a long runway for growth as the company gains traction with Zoom Phone and evolves its main application to a unified communication platform with the recent chat launch and the pending release of video engagement center.

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Company Profile

Business Description

Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company’s cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

Contact
55 Almaden Boulevard, 6th Floor
San Jose, CA, 95113
T +1 888 799-9666
Sector Technology
Industry Software - Application
Most Recent Earnings Oct 31, 2021
Fiscal Year End Jan 31, 2022
Stock Type Aggressive Growth
Employees 6,269

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