ZM - Embedded Expectations Analysis - 2020 11 09
Zoom Video Communications, Inc. (ZM:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 210.7x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about organic and revenue growth, Zoom Phone's capabilities, and Zoom For HomeSpecifically, management may lack confidence in their ability to improve organic growth, maintain revenue growth, and focus on R&D. Moreover, they may lack confidence in their ability to deploy Zoom Phone as a unified communications platform and bring Zoom Phone internationally. Furthermore, they may be concerned about the high percentage of customers that still use legacy PBX systems. In addition, they may lack confidence in their ability to support remote work through Zoom for Home and improve its online video conferencing service. Finally, they may be exaggerating their business position and they may lack confidence in their ability to use promotions to reach out to customers
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.
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