Zoom Video Communications Inc - Ordinary Shares - Class A

Zoom Video Communications Inc - Ordinary Shares - Class A

ZM

Market Cap$25.81B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Zoom Video Communications Inc - Ordinary Shares - Class AZoom Video Communications Inc - Ordinary Shares - Class A25.7-11%5.60.2

Earnings Call Q4 2025

February 24, 2025 - AI Summary

Revenue and Growth: Zoom reported Q4 total revenue of $1.184 billion, marking a 3% year-over-year growth, exceeding guidance by $4 million. Enterprise revenue grew approximately 6% year-over-year, now representing 60% of total revenue. For FY26, guidance suggests total revenue in the range of $4.785 billion to $4.795 billion, reflecting an expected growth of about 2.7% year-over-year.
AI Strategy and Customization: The company is transitioning into an AI-first work platform, with AI Companion usage increasing by 68% quarter-over-quarter. A new Custom AI Companion will be launched in April at a price point of $12 per seat, expected to enhance feature customization for businesses and generate additional revenue streams. There's optimism that AI features will enhance customer value, driving growth in enterprise accounts.
Cash Flow and Profitability: Zoom delivered a strong free cash flow of $416 million in Q4, growing 25% year-over-year, with margins expanding to 35.2%. The company has a robust cash position of approximately $7.8 billion and intends to utilize cash for potential share buybacks, having repurchased 4.3 million shares for $355 million in Q4.

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$79.00

Target Price by Analysts

6.6% downsideZoom Video Communications Target Price DetailsTarget Price
$237.96

Current Fair Value

181.2% upside

Undervalued by 181.2% based on the discounted cash flow analysis.

Share Statistics

Market cap$25.81 Billion
Enterprise Value$25.83 Billion
Dividend Yield$0 (0%)
Earnings per Share$3.28
Beta0.79
Outstanding Shares306,553,952

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio25.68
PEG111.15
Price to Sales5.64
Price to Book Ratio2.92
Enterprise Value to Revenue5.54
Enterprise Value to EBIT29.14
Enterprise Value to Net Income25
Total Debt to Enterprise0.05
Debt to Equity0.15

Revenue Sources

No data

Insider Trades

ESG Score

No data

About Zoom Video Communications Inc

CEO: Eric Yuan