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Zoom Video Communications (NASDAQ:ZM) is scheduled to announce Q4 earnings results on Monday, February 27th, after market close.
Earlier this month the cloud-based communications platform company said it would lay off 1,300 employees, or about 15% of its workforce, as its deals with a post-COVID-19 business slowdown.
In late January, in response to a slowdown in user growth, Zoom (ZM) said it would enact a 7% price increase for its popular Zoom One Pro plan.
However, MKM Partners cautioned of few signs of growth picking up soon, cuting its rating on the communications platform leader. It also sees “limited upside” for the company’s Meetings offerings in due to larger economic pressures in Europe.
For the year, Zoom (ZM) shares have lost more than 42% of their value.
Over the last 3 months, EPS estimates have seen 3 upward revisions and 2 downward. Revenue estimates have seen 0 upward revisions and 22 downward.
The consensus EPS Estimate is $0.82 (-36.4% Y/Y) and the consensus Revenue Estimate is $1.1B (+1.9% Y/Y).
Morgan Stanley sees enterprise growth to be weaker than expected, given renewals concentrated around COVID timing, macro and employment headwinds to this segment, and FX headwinds.
Bernstein too highlighted challenges in upselling to Zoom’s existing – and robust – base of enterprise customers, as well as a continued deterioration in web metrics that suggest its top line base is yet to stabilize.
Meanwhile, Wells Fargo noted that Zoom (ZM) meaningfully outpaced peers during the pandemic, and will be looking to bring investors’ attention towards margins.
Over the last 2 years, ZM has beaten EPS estimates 100% of the time and has beaten revenue estimates 63% of the time.
