Video communications platform Zoom (NASDAQ:ZM) will be announcing earnings results this Thursday after market close. Here’s what to look for.
Zoom beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $1.17 billion, up 2.9% year on year. It was a strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. It added 104 enterprise customers paying more than $100,000 annually to reach a total of 4,192.
Is Zoom a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Zoom’s revenue to grow 2.9% year on year to $1.20 billion, in line with the 2.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.38 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zoom has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1% on average.
Looking at Zoom’s peers in the video conferencing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Five9 delivered year-on-year revenue growth of 12.4%, beating analysts’ expectations by 2.9%, and RingCentral reported revenues up 4.6%, in line with consensus estimates. Five9 traded down 6.1% following the results while RingCentral was up 26.9%.
Read our full analysis of Five9’s results here and RingCentral’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the video conferencing stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.6% on average over the last month. Zoom is down 3.3% during the same time and is heading into earnings with an average analyst price target of $91.07 (compared to the current share price of $72.02).
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