The video-conferencing software has been the stock to beat on Wall Street this year. Here’s what you can expect on Zoom’s Q3 earnings call next week.
To say it’s been quite the year for Zoom would be a slight understatement. Up almost 6-fold since we added it to the MyWallSt shortlist in January, the pandemic paved perfect conditions for Zoom as people’s work and social lives moved online. After a truly jaw-dropping Q2 report three months ago, Eric Yuan & Co have some big boots to fill. Will the gravy train stay on track after Zoom’s Q3 earnings call next week, or will we finally see the stock of the year hit a roadblock?
When is Zoom’s earnings date?
Zoom reports earnings for the third quarter of the fiscal year 2021, on Monday, 30th of November at 5:30 pm Eastern Time.
How can I listen to Zoom’s earnings call?
To listen to the call and to access the transcript, as well as the shareholder’s letter and the financial statements for the quarter, all you need to do is go to Zoom’s investor relations page.
What to expect
Zoom is one of the few public companies to still give guidance in 2020, and it expects to take in earnings per share of $0.73 – $0.74 on revenue of $685 – $690 million this quarter. This would represent a year-over-year increase in revenue of over 300%, which would, amazingly, be a deceleration in growth from the last quarter.
The leadership team has set out some pretty lofty targets for this quarter, but will they need to surpass them in order to satiate Wall Street’s astronomically high expectations for the company? Another 40% bump in one day may be too ambitious even for the most optimistic of investors.
Privacy concerns have been one mark on an otherwise stellar year for Zoom. It has just come to a settlement with the FTC over ‘misleading remarks’ earlier in the year, in which it falsely claimed its calls were fully-encrypted. Hopefully, these concerns will be assuaged with the rollout of end-to-end encryption in the quarter just gone, but I expect the privacy and security of the platform to be a topic brought up both by analysts and the executive team.
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MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in companies mentioned above. Read our full disclosure policy here.