ZM - Embedded Expectations Analysis - 2020 08 14
Zoom Video Communications, Inc. (ZM:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 186.2x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about Zoom platform capabilities, their growth outlook, and their ability to handle rising usageSpecifically, management may lack confidence in their ability to maintain operating cash flow growth, meet revenue guidance, and grow Zoom Phone similar to Zoom Video. Furthermore, they may be concerned about the potential of Zoom's built-in chat feature and the use cases of their prosumer model. Moreover, they may lack confidence in their ability to sustain the usage growth of Global 2000 customers and meet the capacity needs of the surge in Zoom usage. Additionally, they may be exaggerating Zoom's ability to integrate well with Slack and Microsoft Teams, the progress of their salespeople hirings, and the potential of Zoom 5.0's new security features
Zoom Video Communications provides a video-first communications platform that delivers happiness and fundamentally changes how people interact. The company connects people through frictionless video, voice, chat and content sharing and enable face-to-face video experiences for thousands of people in a single meeting across disparate devices and locations. The company's cloud-native platform delivers reliable, high-quality video that is easy to use, manage and deploy, provides an attractive return on investment, is scalable and easily integrates with physical spaces and applications.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.