Zoom (ZM) will report its fiscal Q1 2022 earnings after the closing bell on Tuesday. The video conferencing company saw stratospheric growth during the pandemic, and investors will closely watch its performance as the pandemic wanes and people begin meeting more in person.
Here’s what analysts are expecting from the company in the quarter as compiled by Bloomberg, versus how the video chat giant performed in Q1 2021.
Revenue: $910.2 million expected versus $328.2 million in Q1 2021.
Earnings per share: $0.99 expected versus $0.20 in Q1 2021
Zoom was emblematic of the way our lives changed during the pandemic, as people turned to video chat to stay in touch for everything from virtual happy hours to birthdays and weddings. Zooming became a frequent activity for people looking to, at least temporarily, feel as though they weren’t trapped indoors.
While consumer revenue certainly benefited Zoom, it’s the companies that have more than 10 employees and those that pay more than $100,000 in the trailing 12 months that are worth looking at, as they serve as the firm’s main revenue sources.
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With cities and states in the U.S. reopening as more of the population is vaccinated, and countries around the world starting to open up to travelers, the level of growth Zoom has experienced will be on the minds of many investors.
It’s difficult to frame Q1 2022 against Q1 2021, since the pandemic didn’t kick into high gear, at least in the U.S., until March 2020. But Zoom’s Q2 2022 guidance could offer a look at how well the company expects to perform going forward versus the early portion of the pandemic.
It’s going to be difficult to top the kind of growth Zoom saw throughout 2020. Revenue in fiscal Q3 2021, for instance, jumped an incredible 367% year-over-year. Investors and analysts will also be looking at churn, or the number of subscribers who have left Zoom in the last few weeks of the quarter as vaccines became more readily available.
Zoom has been particularly sensitive to pandemic news, with the company’s stock falling from $500.11 on Nov. 6 2020 to $376.01 Nov. 10 when Pfizer and BioNtech announced that their vaccine was more than 90% effective.
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