How Did Zoom Video and Snap Perform in Recent Quarters?
May 24 2022 - 5:47AM
Finscreener.org
Technology stocks such as
Zoom Video (NASDAQ:
ZM) and Snap (NYSE:
SNAP) are trading
significantly below all-time highs due to the ongoing sell-off
surrounding the equity market. While shares of Zoom Video are
gaining momentum, Snap stock is down over 30% in pre-market trading
today. Let’s see why the two companies are under the investor radar
today.
Zoom Video reports revenue of $1.07 billion
In the fiscal first quarter of
2022 (ended in April), Zoom Video reported revenue of $1.07 billion
and adjusted earnings per share of $0.87. Analysts forecast Zoom to
report revenue of $1.07 billion and adjusted earnings of $0.87 per
share.
In fiscal Q2 of 2023, Zoom Video
forecast revenue between $1.115 billion and $1.12 billion with
earnings per share between $0.90 and $0.92. Comparatively, Wall
Street forecast Q2 sales at $1.11 billion with adjusted earnings of
$0.88.
We can see Zoom Video surpassed
consensus estimates in Q1 and provided a better-than-expected
forecast for the July quarter driving the stock higher.
Zoom confirmed it ended Q1 with
198,900 enterprise customers, an increase of 24% year over year. In
the last 12 months, Zoom’s net dollar expansion rate for
enterprise-facing customers stood at 123%. It means existing
customers increased spending on the Zoom platform by
23%.
Zoom also stated that 2,916
customers generate more than $100,000 in annual sales, an increase
of 46% compared to the year-ago period. The company continues to
expand its suite of products and services allowing it to onboard
new customers and increase spending by existing ones.
In Q1 it launched the Zoom
Contact Center, Zoom Whiteboard, and Zoom IQ for Sales. These
solutions should expand the total addressable market for Zoom which
will drive revenue growth in the future.
Zoom reported quarterly revenue
of more than $1 billion for the first time ever as its solutions
such as Zoom Rooms and Zoom Phone continued to gain traction. In
Q1, Zoom’s adjusted operating margin stood at 37% while its
adjusted free cash flow margin was 46%.
ZM stock is down 84%
from all-time highs
valuing the company at $25.3
billion, by market cap. ItU+02019s valued at 5.5 times forward
sales and a price to earnings multiple of 25x which is quite
reasonable.
Snap lowers guidance for Q2
In early 2021, Snap claimed it is
positioned to generate revenue growth of 50% for several years.
But Apple (NASDAQ: AAPL)
soon launched a privacy update on iOS which impacted revenue for
Snap and several other social media platforms, resulting in a
sell-off over the last few months.
In 2021, Snap reported sales of
$4.1 billion, an increase of 64% year over year. In 2022,
analysts forecast sales growth to decelerate to 33% in 2022. The company ended
Q1 with 332 daily active users, an increase of 18% year over year,
while average revenue per user surged by 17%.
Snap’s adjusted EBITA turned
positive in 2020 and increased by an impressive 1,300% last year.
This year analysts expect Snap to report revenue of $1.22 billion
in Q2 and $5.5 billion in 2022.
However, in a regulatory filing
Snap stated its revenue and adjusted EBITDA will be below the lower
end of its previous guidance. It explained, “Since we issued
guidance on April 21, 2022, the macroeconomic environment has
deteriorated further and faster than anticipated. As a result, we
believe it is likely that we will report revenue and adjusted
EBITDA below the low end of our Q2 2022 guidance range.”
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