Stockideas

Zoom Video Communications, Inc
(NASDAQ:ZM)
Zoom Video Communications, Inc

Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system that provides secure call routing, call queuing, call detail reports, call recordi...
Founded: 2011
IPO date: 2019-04-18
IPO price: $36
Full Time Employees: 4,422
CEO / Founder: Eric S. Yuan 
Sector: Communication Services
Industry: Telecom Services
Next Earnings Date: 2022-11-21
Stock price: $76.61 (+1.57%)
zoom stock
By: bahnhopf Ich bin gut   💬 25   
   on Nov 22, 2022

Zoom is a buy. Making $1 EPS a quarter and about $4 in the past 12 months gives them a p/e of about 73/4=18.25. that's not bad for a company that is still growing. $zm


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zoom stock
By: bahnhopf Ich bin gut   💬 25   
   on Nov 14, 2022

I had to use this everyday at work. no frills even when you're in a video call with couple hundred others concurrently. It’s pretty crazy how profitable and undervalued this company is. $zm


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Zoom Video drops 20% post earnings
By: ssmlee04 Community Lead :))   💬 97   
   on Nov 23, 2021

They beat the revenue and earnings guidance by a bit. But maybe this is already priced in and is not good enough and and we won't be using Zoom as much when either we exit Covid or can use their competitor services like Teams and other services.

Their stock move up 10x from their 2020 dip but there's a chance that's the end of the it. There's a chance we won't see this $600 level ever again.

$zm


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Zoom CEO sells very little shares even when the stock price is up 10x
By: ssmlee04 Community Lead :))   💬 97   
   on Nov 01, 2021

This guys almost never sell his stocks when when the stock price is up like 10x. He has around 26m shares at IPO and 2 years later when the stock price is up almost 10 times he's still got 22m. Maybe that shows how much faith he has in this company $zm

https://i.imgur.com/kYk4hER.png


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Tech crash continued
By: ssmlee04 Community Lead :))   💬 97   
   on Mar 09, 2021

It feels like tech stock has nowhere else to go but down and a market crash for tech is imminent. A lot of great tech companies are retracing 20-40% from the top already. A lot of stocks have really bearish charts like this. And it does not feel like this is going to end well.

https://i.imgur.com/bhc7qyk.png

But if you look back at the past couple of years things are getting out of control. Take Tesla for example, it rallies around 20x in 2 years. And even with the 35-40% drop from all time-high it is still up 12 times from the dip 2 years ago. But when you look at the fundamentals you'll see there's not a lot changed in the past 2 years. The number of deliveries in 2019 is around 360,000 and around 500,000 in 2020. Also, the revenue is around 50-100% higher in 2021 than 2019. And it's way less than the increase in the stock price multiples.

SaaS stocks are also like that. Many good SaaS names like $okta, $net, $ayx, $crwd, $docu, $zm, $hubs are also up 5x - 10x from where it was 3 years ago. And they're not even close to profitability. And even with the 20-40% drop from all-time high they're still trading at p/s multiples of over 20-40.

A p/s ratio of 40 means if you assume the current revenue run rate can last, and if 100% of the revenue is paid back to you in earnings it would still take 40 years for this investment to break even. So, arguably, even with the 20-40% drop in the stock price lots of the SaaS companies still would not be considered cheap.

So maybe this crash in tech is just things going back to the norm. During year 2000 it took the Nasdaq index almost 2 years to drop 80% and run the course before another bull market starts. And if this one follows a similar pattern that would potentially mean we still have about 23 months to go before we can safely get back to investing in tech stocks again. But of course it would also be entirely different than the tech bubble case in 2000.

So what happens next in the stock market would potentially be the make or break moment for tech in the next couple of years. Finger crossed. $tsla ^IXIC


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2020 SaaS review
By: ssmlee04 Community Lead :))   💬 97   
   on Jan 03, 2021

2020 is an interesting year for SaaS companies. Some of them went public and gained huge success in the stock market. Some of them continued their rally from 2016-2019 and have another great year. Some of them have greater success than the others because of their business models in the work-from-home environment. And there's a common thing for those SaaS companies, that is: those companies probably developed something people want.

The following is a list of the top 15 SaaS performers in our database in the last 250 days as of December 31, 2020. https://i.imgur.com/xL1w2F2.jpg

Some of the companies here are getting a lot of attention this year. Terminologies like Zoom Fatigue even appeared in the second quarter. It seems everyone was talking about Zoom at some point. And that's reasonable because Zoom is the clear winner in this video conferencing space. They keep your company operational by providing you a smooth video call user experience for your employees and your clients. There are literally companies built on top of Zoom calls that provide you remote journey experiences, and they do great because of Zoom and Covid.

https://i.imgur.com/KWx3Ea2.png

Cybersecurity is also something to worry about for companies in 2020. Intuitively, when companies are working remotely it would be harder for companies to safeguard their infrastructure. That's when companies like CrowdStrike or Zscalar or Okta come into play. Okta help companies manage their employees' access identities. Zscalar and CrowdStrike protect your web infrastructure using technologies to derive insights from your data and protect your infrastructure in real-time or near real-time.

Also when a lot of people are working remotely you'd expect Internet usage to go up. Cloudflare is a CDN company that help websites serve their requests fast. Fastly is also doing similar things in the video CDN space and helps companies like TikTok serve their videos. And as more people spend more time on their mobile devices those companies also do well. And to support those web requests you need companies like Twilio to send you SMS messages or phone calls, without Twilio you might not even able to login to your apps.

Also when people are staying at home people have more time to get creative. So maybe people start selling stuff on Shopify or Etsy or Pinterest or create websites on Wix. And at the same time, you have marketing companies like Facebook or TradeDesk or Digital Turbine to help you advertise your stuff on mobile devices. The success stories for those SaaS companies are inter-connected.

There are many other interesting SaaS companies that are not mentioned above. They are not in the top 15 maybe because they're not directly related to the stay-at-home trend, but that doesn't mean they're less interesting. As a software engineer, I have to use application monitoring services, database services, image compression and processing services, mailing services... and many others. This is what makes a modern software company functional. And as long as your company is growing you would continue to add and look for the best services for your company. And when more companies are becoming software companies I can imagine those SaaS companies to have a great future ahead.

A few things in common here for the companies on the list:

  • They grow REALLY fast. A lot of the companies on the list are growing 40-80% a year.
  • They all have really high gross profit margins.
  • They're traded at a very high valuation. A lot of them have a p/s ratio of 40-60.
  • The majority of them are losing money.
  • They don't pay dividends.

A possible explanation is that there are no clear winners in the space they're operating in, so they're doing whatever it takes to make sure they win in the long run. And of course that means they cannot afford to pay dividends. Also they're all traded at astronomical levels of valuations maybe because they have high profit margins, and the future for those companies are expected to be good.

Take DocuSign for example. They're one of the pioneers in e-signature. But e-signature is some sort of niche market. You may come up with another e-signature solution with a small team but by the time you have the solution in place you might already be spending millions achieving zero revenue while DocuSign might grow revenue another 40%. In the end there's just not enough market share for you to survive. So it would not be a good idea to copy DocuSign business model, this makes DocuSign (and all the SaaS companies) unique in a way.

If you look back at Amazon anytime in the past 20 years you'll see it's always traded at high multiples. It is still traded at high multiples today but would anyone complain that Amazon is too expensive? Probably not. Because now we know Amazon is dominating in any spaces they're operating in, we just couldn't see it 20 years ago. So maybe there's a correction between winning and being expensive and that's why all the cloud stocks are expensive because there's a chance all of them are dominating in their space in the next 5-10 years.

But, of course, being expensive does not mean the company would be successful eventually. But if you want to look for something good in the next 5-10 years there's a chance it's on the list but you just don't know it yet.

$ZS $DBX $ZUO $AYX $DOCU $SMAR $DOMO $SVMK $AVLR $TTD $PCOM $NOW $WDAY $PD $WORK $ZEN $TEAM $VEEV $CLDR $SHOP $FSLY $TWLO $ADBE $AAXN $CRM $OKTA $GOOG $DT $ZM $SPLK $WIX $COUP $MDLA $LPSN $APPN $EPAY $AKAM $APPS $FIVN $BL $PANW $PFPT $CRWD $DDOG $NET $HUBS $NEWR $APPF $RNG $ESTC $BILL $GDDY $DCT $ECOM $PLAN $SNOW $SUMO $FROG $ASAN $JAMF $ADSK


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Zoom Q2 2021 earnings call
By: ssmlee04 Community Lead :))   💬 97   
   on Sep 02, 2020

Zoom Q2 revenue 663.5 million which is up 355% yoy. Zoom also ended its fiscal second quarter with 370,200 customers with at least 10 employees, a gain of about 105,000 customers from the end of April.

So they would be looking at around 2.5b revenue for the year, which puts them at a 50 p/s ratio with the current market cap 130b. It is expensive but in this stay-at-home environment you do not have other choices to work to have fun.

long $ZM


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Zoom Video Communications
By: bennyhong lazy guy   💬 3   
   on Aug 31, 2020

Zoom 在目前這個時候已經成為了遠端視訊的代名詞, 不論是看病 開會 上學, 都能透過Zoom來達成你想要做的事情, 而且產品本身好用且容易上手, 今天會開財報, 我認為這次的成長率應該跟第一季一樣會很嚇人, 讓我們來期待Zoom的爆發性成長吧


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Zoom Video Communications
By: jesse823 lazy guy   💬 5   
   on Jul 30, 2020

Super Growth Company Super Growth Company Super Growth Company Super Growth Company


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Zoom faces heat for closing activist account
By: christopher lazy guy   💬 13   
   on Jun 11, 2020

https://seekingalpha.com/news/3582173-zoom-faces-heat-for-closing-activist-account

$ZM.


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Zoom has a huge growth in the user base according to their CEO
By: raspberry lazy guy   💬 31   
   on Apr 05, 2020

https://www.bloomberg.com/news/articles/2020-04-04/zoom-ceo-messed-up-as-trolls-invade-a-coronavirus-haven-wsj

The number of daily meeting participants across Zoom’s paid and free services has gone from around 10 million at the end of last year to 200 million now, the company says. Most of those people are using its free service.

That basically means their revenue is probably gonna grow 20 times. Also their system has no problem dealing with scalability which is a really good sign.

$ZM


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Trading Coronavirus
By: ssmlee04 Community Lead :))   💬 97   
   on Mar 01, 2020

There's a big news in the past few weeks - coronavirus.

News and videos are coming out from Wuhan everyday since end of January and things seem to be really bad. People are lining up in front of hospitals and the city is running out of hearses and body bags. People in neighboring countries are on high alert and wear masks wherever they go.

You can't take it for granted when a virus cause the entire city of Wuhan to lockdown. This means the virus is going to have bad impacts and I was convinced the virus would eventually hit Toronto, which is where I live. So maybe I have to prepare for an outbreak as well.

I went to Walmart and Shoppers around late Jan and I couldn't find the masks anywhere. They're all sold out. So it's unfortunate that I don't have too many masks left in my storage.

This also convinced me that buying facial masks manufacturer in a potential outbreak might be a good idea. Some of my friends mentioned $APT to me. It's a company that specializes in making facial masks and related medical devices. Their financials are also ok. It's a solid company with p/e ratio around 15 before the price breakout and even when it's up 50% - 100% the p/e ratio is still reasonable. if you have an outbreak you'd need to wear masks for many reasons.

I bought this around Jan 29 around 5.x.

APT is something I really don't understand. And everyday I was looking at APT to move sideways. And the big / ask spread is so big no one is trading it and the spread can get up to 2-3%. Also in the next 20 days I was convinced by world media that the outbreak is contained in China and is probably not gonna happen in the US so I sold out this position around Feb 12 around $5.

And a few days ago it jumped all of a sudden and within 3 days this is already trading around $40 USD. What I don't understand is how is it not moving at all in the past 20 days. Is it all the media is so manipulated that they don't tell you the truth? Or is it just lack of experience that I am not able to hold it a bit longer. Maybe it's a bit of both.

I am already away from $APT now but would like to observe how this one would play out during this coronavirus outbreak.

There also seem to be a few other coronavirus betting proxy during an outbreak. Zoom is one great example. It went up 30% in Feb. It's reasonable because when you have an outbreak and cannot go to work you'd use video conference tools like Zoom more than before. And according to them the number of users they acquired in the first 2 months in 2020 is greater than the total users they acquired in 2019. So you'd expect them to have a great year ahead.

Same thing for Netflix and Slack. If you cannot go out to work then you would spend a lot of time watching movies or chatting with your colleagues remotely. So chances are the services would benefit from a potential outbreak.

So there are safer investments like this during a potential market downturn compare to others. If you can protect your capital during a market crash like this than the chances of you being financially good would increase long term.

$ZM $NFLX $WORK


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ZM
By: tachyon Very lazy guy   💬 23   
   on Sep 13, 2019

Zoom is blocked in China now. Well it's one of the best video communication software out there but all of a sudden you lose a potential market well that's gotta hurt.


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DOCU
By: tachyon Very lazy guy   💬 23   
   on Sep 06, 2019

It's the only SaaS stock that goes up AH when it has earnings miss. All other stocks like $smar $zm $crwd are all revenue and earnings beat and drop 10% AH. Funny world. $docu


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Zoom is without doubt one of the best video conferencing service out there
By: istanbul Traveler   💬 7   
   on Jul 28, 2019

I was enrolled in an online course last week and they require everyone to use Zoom to participate in the course. It's really smooth you can see all the others and sharing screens are all very smooth. Also apparently you can have integrations in Slack and have Slack to open the application and a meeting room for you. It's indeed pretty neat. Although I wasn't very convinced about this entire video conference software thing I feel like they're one of the best out there and it's getting traction and maybe worth paying attention to.


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zoom
By: dragonfly goblin   💬 13   
   on Jun 08, 2019

Check out their earnings call it’s perfection of what they’re doing in the call and in running the company. I am very optimistic about this company in the near term I don't think their clients can switch to other services anytime soon. iI am quite interested in setting up a test position in this company when it pulls back.


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