Equity Profile

ZM

Zoom Communications, Inc.

Information TechnologyApplication Software$29.8B

May21Thu

Post-Earnings Recap

ReportedQ1-2027After Close4:05 PM EDT

Zoom Communications Beats on EPS, Stock Down 2.69%

Metric	Actual	Expected	Surprise
EPS	$1.55	$1.42	+9.13%
Revenue	N/A	$1.2B	N/A

management commentary, guidance changes, and full analysis available with Pro.

Zoom Communications Beats on EPS, Stock Down 2.69%

Key Numbers

Metric	Actual	Expected	Surprise
EPS	$1.55	$1.42	+9.13%
Revenue	N/A	$1.2B	N/A

Management Commentary

Tone: Unknown

No transcript is on record for the earnings call, so the analysis is based solely on numerical results.

What It Means

Zoom Communications reported better-than-expected earnings per share, but did not provide revenue figures. Despite the EPS beat, the stock fell by 2.69%, indicating investor concerns or profit-taking after the announcement. The lack of guidance and revenue details may have contributed to the negative stock reaction.

Company Snapshot

Zoom Communications, Inc. is a technology company that provides video communication solutions, primarily through its popular video conferencing platform....

Key Metrics to Watch

EPS

Earnings per share is a key indicator of the company's profitability and financial health.

$1.42

Revenue

Revenue growth reflects the company's ability to attract and retain customers in a competitive market.

$1.2B

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

Zoom Communications, Inc. is a technology company that provides video communication solutions, primarily through its popular video conferencing platform. As remote work and digital communication continue to grow, Zoom plays a crucial role in connecting people and businesses worldwide.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+84.95%

Avg Stock Reaction

-0.11%

Last Quarter Recap

In the last quarter, Zoom reported an earnings surprise of 51.1%, with an EPS of $1.44 compared to expectations of $0.95. However, the stock fell by 2.38% the following day, indicating mixed investor sentiment despite the strong earnings.

Management Promises & Guidance

Expectations

Wall Street Expectations

Analysts expect Zoom to continue its strong performance with an EPS of $1.42 and revenue of $1.2B. The market is closely watching how the company navigates competition and evolving customer needs.

Bull Case

If Zoom exceeds expectations, it could signal strong demand for its services and continued growth in the remote work sector, potentially boosting investor confidence.

Bear Case

Conversely, if Zoom fails to meet expectations or provides weak guidance, it may raise concerns about its future growth prospects and competitive position.

Key Metrics to Watch

EPS

$1.42

Earnings per share is a key indicator of the company's profitability and financial health.

Revenue

$1.2B

Revenue growth reflects the company's ability to attract and retain customers in a competitive market.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Zoom's revenue growth meet or exceed the $1.2B consensus?

Revenue performance is critical for assessing the company's ability to sustain growth in a competitive landscape.

What guidance will management provide regarding future customer acquisition and retention?

Management's insights on customer trends will be key to understanding Zoom's long-term growth potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate Zoom's ability to capitalize on the ongoing shift to hybrid work environments, which could drive higher-than-expected revenue growth.

Supporting Evidence

Zoom's recent strong earnings surprises indicate robust demand that may not be fully reflected in current estimates.

The options market's implied move of 8.3% suggests that significant volatility is anticipated, indicating that investors are bracing for potential surprises.

Key Risk

If Zoom demonstrates strong customer retention and acquisition metrics, it could challenge the current revenue estimates.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is weighing Zoom's ability to sustain growth amidst increasing competition and changing customer needs.

Bull Confirmed If

Exceeding $1.2B in revenue and maintaining strong customer growth rates would confirm the bull case.

Bear Confirmed If

Falling short of the $1.2B revenue target or weak guidance would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±8.3%

Historical Avg

±1.8%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect volatility around the earnings announcement.

Options are pricing ±8.3% while ZM has averaged ±1.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

2.0%

30d HV

51.3%

Calls (905K)P/C Ratio: 1.25Puts (590K)

Edge

Insider Activity

Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.

Bought

$0.00

0 sh

0 insiders

Sold

$9.8M

119,247 sh

5 insiders

Net

$9.8M

Net selling

Most Active Insiders· 25 open-market trades

Chief Executive OfficerYuan Eric S.
$6.9M
Net selling

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zoom beats expectations, history suggests the stock could rise around 0.21% the following day, reinforcing positive sentiment.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may experience muted movement as investors reassess growth prospects.

Miss

A miss could lead to a decline, with historical patterns suggesting an average drop of around 1.52% following disappointing results.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on customer acquisition strategies and retention rates.
2Insights into competitive pressures and how Zoom plans to address them.
3Management's outlook on the future of remote work and its impact on Zoom's business.
4Details on any new product features or enhancements that could drive growth.
5Guidance on revenue expectations for the upcoming quarters.

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Company Snapshot

Zoom Communications, Inc. is a technology company that provides video communication solutions, primarily through its popular video conferencing platform....

Key Metrics to Watch

EPS

Earnings per share is a key indicator of the company's profitability and financial health.

$1.42

Revenue

Revenue growth reflects the company's ability to attract and retain customers in a competitive market.

$1.2B

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+84.95%

Avg Stock Reaction

-0.11%

Last Quarter Recap

Management Promises & Guidance

Expectations

Wall Street Expectations

Analysts expect Zoom to continue its strong performance with an EPS of $1.42 and revenue of $1.2B. The market is closely watching how the company navigates competition and evolving customer needs.

Bull Case

If Zoom exceeds expectations, it could signal strong demand for its services and continued growth in the remote work sector, potentially boosting investor confidence.

Bear Case

Conversely, if Zoom fails to meet expectations or provides weak guidance, it may raise concerns about its future growth prospects and competitive position.

Key Metrics to Watch

EPS

$1.42

Earnings per share is a key indicator of the company's profitability and financial health.

Revenue

$1.2B

Revenue growth reflects the company's ability to attract and retain customers in a competitive market.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Zoom's revenue growth meet or exceed the $1.2B consensus?

Revenue performance is critical for assessing the company's ability to sustain growth in a competitive landscape.

What guidance will management provide regarding future customer acquisition and retention?

Management's insights on customer trends will be key to understanding Zoom's long-term growth potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate Zoom's ability to capitalize on the ongoing shift to hybrid work environments, which could drive higher-than-expected revenue growth.

Supporting Evidence

Zoom's recent strong earnings surprises indicate robust demand that may not be fully reflected in current estimates.

The options market's implied move of 8.3% suggests that significant volatility is anticipated, indicating that investors are bracing for potential surprises.

Key Risk

If Zoom demonstrates strong customer retention and acquisition metrics, it could challenge the current revenue estimates.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is weighing Zoom's ability to sustain growth amidst increasing competition and changing customer needs.

Bull Confirmed If

Exceeding $1.2B in revenue and maintaining strong customer growth rates would confirm the bull case.

Bear Confirmed If

Falling short of the $1.2B revenue target or weak guidance would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±8.3%

Historical Avg

±1.8%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect volatility around the earnings announcement.

Options are pricing ±8.3% while ZM has averaged ±1.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

2.0%

30d HV

51.3%

Calls (905K)P/C Ratio: 1.25Puts (590K)

Edge

Insider Activity

Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.

Bought

$0.00

0 sh

0 insiders

Sold

$9.8M

119,247 sh

5 insiders

Net

$9.8M

Net selling

Most Active Insiders· 25 open-market trades

Chief Executive OfficerYuan Eric S.
$6.9M
Net selling

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zoom beats expectations, history suggests the stock could rise around 0.21% the following day, reinforcing positive sentiment.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may experience muted movement as investors reassess growth prospects.

Miss

A miss could lead to a decline, with historical patterns suggesting an average drop of around 1.52% following disappointing results.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on customer acquisition strategies and retention rates.
2Insights into competitive pressures and how Zoom plans to address them.
3Management's outlook on the future of remote work and its impact on Zoom's business.
4Details on any new product features or enhancements that could drive growth.
5Guidance on revenue expectations for the upcoming quarters.