The company is headquartered in San Jose, Calif., and has additional offices in more than 15 locations in the United States, Europe, Asia, and Australia. Even with these guides, take time to explore the app on your own, and discover everything it has to offer. If you don’t have an account and just want to join a Zoom meeting, you can do this a few different ways.
They include legacy web-based meeting service providers such as Cisco Systems Inc.’s (CSCO) WebEx and LogMeIn Inc.’s GoToMeeting. Rivals also include bundled productivity solution providers with video functionality such as Alphabet Inc.’s (GOOGL) Google G Suite and Microsoft Inc.’s (MSFT) Microsoft Teams. Other competitors are unified communications as a service (UCaaS) and legacy private bank exchange (PBX) providers such as 8×8 Inc. (EGHT), Avaya Holdings Corp. (AVYA), and RingCentral Inc. (RNG). Zoom is a cloud-based video communications app that allows you to set up virtual video and audio conferencing, webinars, live chats, screen-sharing, and other collaborative capabilities.
- However, it managed to increase its stock price by 200% in a period when the S&P 500 dropped by 17%, and has outperformed several high-profile tech stocks like Slack and Uber.
- A “Zoom Meeting” refers to a videoconferencing session hosted on its cloud infrastructure.
- Microsoft (MSFT) and its Teams communications tools are Zoom’s major rival in the business market.
- Looking back at the last two years, there may be no stock more representative of the pandemic’s impact on the stock market than Zoom Video Communications (ZM -0.89%).
- Zoom has provided investors with spectacular growth and returns in the past couple of years; however, I don’t see that continuing into the future.
Zoom Video Communications’ (ZM -0.89%) stock price dropped to its lowest levels in over three months after the company released its second-quarter earnings report on Aug. 30. The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$29b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$69.2, the company appears quite good value at a 30% discount to where the stock price trades currently.
Therefore, Zoom clearly prefers to temper Wall Street’s expectations instead of raising the bar too high and setting itself up for a big earnings miss. Zoom expects its revenue to rise 31% year over year in the third quarter, which surpasses analysts’ estimates, but for its adjusted EPS to grow just 8%-9%, which misses expectations for 10% growth. In the enterprise market for business customers, revenue rose 5% to $667.3 million, topping estimates of $658 million.
About Zoom Video Communications, Inc.
This refers to people who gain access to Zoom calls without being invited, and try to wreak havoc. Earlier in the year, there were a number of widely reported Zoombombing cases, which led the company to crack down on them. Once you’re up and running and depending on your plan, Zoom offers varying levels of tools to enhance your video call. Before we go any further, it’s important to note that the platform offers four distinct pricing plans, from basic to enterprise. What’s right for you depends on how you plan to use the app.
A rough start to 2022 despite strong financial performance
Zoom is a cloud-based conferencing software that can be used via your browser, desktop or mobile application. Zoom enables users to virtually interact with contacts when a physical meeting is not possible, such as if you work remotely. Zoom is more than a video chat software, as it allows users to record meetings, share one another’s screens and create annotations. This flexibility results in the ability to collaborate efficiently on projects for work or education. The second stage is also known as Terminal Value, this is the business’s cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.1%.
Zoom is putting up impressive numbers amid pandemic-induced volatility.
However, if the company keeps building upon its financial results and gains market share in the video conferencing industry, it could result in a promising future for the relatively new company. There is one caveat worth mentioning https://www.topforexnews.org/brokers/your-access-to-this-site-has-been-limited/ — Zoom’s growth in the coming years is expected to let up significantly from current levels. As the pandemic unwinds and Zoom becomes a more mature company, it’s inevitable that sales growth will come down from its all-time highs.
Put together, you can turn nearly any room into a professional-grade conference room. If you’re looking to make your business as Zoom-friendly as possible, Zoom Rooms https://www.forex-world.net/cryptocurrency-pairs/zrx-usd/ are a worthwhile investment. At the end of fiscal 2021, Zoom predicted its revenue would rise 42%-43% in fiscal 2022, compared to its latest guidance for 51% growth.
This is still a much higher price than it was trading at the same point last year. Zoom’s operating margins are expanding as its scale improves and its data center capacity rises. Should investors buy Zoom’s dip, or should they avoid it as more people physically return to work and school? Let’s examine Zoom’s growth rates, future plans, and valuations to find out. Zoom’s valuation has surely contracted, but it’s still not desirable when observing the company’s peer group.
Department of Justice-led panel, named Team Telecom, was investigating the proposed merger’s potential national security risks. Now, whenever you start a call, it’ll be password-protected by default, making it exponentially harder for anyone you don’t know to gain access. Most calls also have a “waiting room” function, which requires the host to approve anyone who wants access to the call. In addition to these additional features, the platform offers a host of add-ons and integrations aimed at professionals, from adding Zoom to your Google Calendar or Outlook account. When this is set, you’ll be able to invite meeting participants to join your conference call, which you can send via email, contact, or phone number.
Zoom Phone, a cloud-calling product rolled out in 2019, lets customers set up group internet phone calls without video. The Zoom Phone replaces traditional business PBX phone systems. Zoom Video reported January-quarter earnings and revenue that topped estimates and announced a $1.5 billion buyback of its own shares. Prior to founding Zoom, Yuan was corporate vice president of engineering at Cisco, and was a founding engineer and vice president of engineering for web and videoconferencing platform Webex. Zoom is a member of the information technology sector and operates within the software industry.
Given the expected slowdown in Zoom’s growth, I think it’s safe to say that the company is still trading at expensive valuation multiples. To make the decision even easier, Zoom is trading at or near its low for price-to-earnings (P/E) and price-to-sales (P/S) ratios. Whereas during the pandemic the case could be made that the company’s valuation got ahead of itself, it’s clear now that the valuation is more in line with, if not underestimating, u s. bond market holidays 2020 Zoom’s fundamentals. While the growth has slowed when compared to the pandemic highs, it’s clear that Zoom is still executing and growing — and worth considering heading into 2022. By taking out of the equation the volatility of the past two years and viewing Zoom’s performance on this two-year basis, we see just how remarkable the growth of its business is. For better or worse, Zoom has become synonymous with the pandemic.
The recent coronavirus pandemic has resulted in the demand for Zoom’s product and services to skyrocket, resulting in a share price to reflect this increased demand. Many analysts predict that Zoom could grow its annual revenue to around the £1bn mark by 2021, a significant increase from the £662m in 2019. Besides the spike of users from coronavirus, many companies are becoming more remote. This ‘remote working revolution’ will require effective video conferencing software, such as Zoom to contribute to the revolution. Zoom Video Communications (ZM), the video-conferencing company has seen major price increases since the Coronavirus outbreak. Is the company’s stock value a reflection of the businesses promising growth?