Video communications platform Zoom (NASDAQ:ZM) will be announcing earnings results this Monday afternoon. Here’s what to expect.
Zoom beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $1.22 billion, up 4.7% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations. It added 82 enterprise customers paying more than $100,000 annually to reach a total of 4,274.
Is Zoom a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Zoom’s revenue to grow 3.1% year on year to $1.21 billion, in line with the 3.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.44 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zoom has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.2% on average.
Looking at Zoom’s peers in the video conferencing segment, some have already reported their Q3 results, giving us a hint as to what we can expect. 8x8 delivered year-on-year revenue growth of 1.7%, beating analysts’ expectations by 3.1%, and Five9 reported revenues up 8.2%, in line with consensus estimates. 8x8 traded up 23.6% following the results while Five9 was down 8.6%.
Read our full analysis of 8x8’s results here and Five9’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the video conferencing stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.2% on average over the last month. Zoom is down 6.2% during the same time and is heading into earnings with an average analyst price target of $93.04 (compared to the current share price of $78.75).
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