ZM - Embedded Expectations Analysis - 2021 07 09
Zoom Video Communications, Inc. (ZM:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 113.1x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, and management is confident about Zoom phone, gross margins, and new customer acquisition.Specifically, management is confident they see more opportunities for Zoom phone among customers that test their solutions, that they continue to see tremendous opportunity in upmarket performance, and that return-to-school will improve gross margin. Also, they are confident new customers accounted for approximately 57% of incremental revenue, existing users deployed additional products, and customers with more than 10 employees represented 63% of revenue.
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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