Equity Profile

ZM

Zoom Communications, Inc.

Information TechnologyApplication Software$29.8B

Aug20Thu

Pre-Earnings Brief

UpcomingQ2-2027After Close5:00 PM EDT

Company Snapshot

Zoom Communications, Inc. is a leading provider of video conferencing software, enabling remote communication and collaboration....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a critical measure of a company's profitability and will indicate how well Zoom is managing costs and generating income.

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its user base and increase sales, which is vital for sustaining its market position.

N/A

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

ZM Q2-2027 Earnings Preview

Context

Company Snapshot

Zoom Communications, Inc. is a leading provider of video conferencing software, enabling remote communication and collaboration. As a key player in the Information Technology sector, Zoom has gained prominence due to the increasing demand for virtual communication tools, especially in the wake of the pandemic and the ongoing shift towards remote work.

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 EPS of $1.55, significantly exceeding expectations. However, the stock experienced a decline of 2.69% the following day, indicating potential market skepticism despite the strong earnings.

Management Promises & Guidance

Focus on enhancing user experience and engagement.
Commitment to expanding into new markets and customer segments.
Plans to innovate and introduce new features to stay competitive.

Expectations

Wall Street Expectations

Overall, expectations are mixed as Zoom has consistently beaten EPS estimates but has faced stock price declines post-earnings. Investors are closely watching for any signs of sustained growth and user engagement.

Bull Case

The optimistic view hinges on continued strong earnings surprises and robust revenue growth, suggesting that Zoom can maintain its leadership in the video conferencing space.

Bear Case

On the downside, concerns about market saturation and competition could lead to disappointing revenue figures, which may negatively impact investor sentiment.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the reported revenue growth rate this quarter?

This figure will be crucial in assessing Zoom's ability to attract and retain users in a competitive market.

How is user engagement trending compared to previous quarters?

Understanding user engagement is vital for predicting future revenue and assessing customer satisfaction.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Zoom's potential for user growth in emerging markets, which could drive stronger-than-expected revenue.

Supporting Evidence

Recent trends show increased demand for remote work solutions in various sectors.

Zoom's innovative features may attract new users despite competition.

Insider selling could indicate confidence in the company's long-term strategy rather than immediate performance.

Key Risk

If user engagement metrics show significant improvement, it could challenge the current cautious outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around Zoom's ability to sustain growth in a competitive environment.

Bull Confirmed If

Revenue growth of 15% year-over-year or better would confirm the bull case.

Bear Confirmed If

Revenue growth below 5% would signal a significant concern about market saturation.

Pre-Earnings Positioning

Options Market

Implied Move

±18.51%

Historical Avg

±1.8%

Pricing rich

The options market is pricing in a significant potential move, indicating that traders expect volatility around the earnings report.

Options are pricing ±18.5% while ZM has averaged ±1.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

49.6%

Calls (1.0M)P/C Ratio: 0.31Puts (400K)

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 and raises guidance, history suggests the stock could see a modest increase, confirming the company's growth narrative.

In-Line / Cautious

An in-line report with cautious commentary may lead to a muted response, reflecting ongoing market skepticism.

Miss

If the company misses expectations, history suggests a potential decline in stock price, as seen in previous quarters.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product features or enhancements.
2Insights into user growth in emerging markets.
3Management's view on competitive pressures and market trends.
4Details on customer retention rates and engagement metrics.
5Future guidance on revenue growth expectations.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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Company Snapshot

Zoom Communications, Inc. is a leading provider of video conferencing software, enabling remote communication and collaboration....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a critical measure of a company's profitability and will indicate how well Zoom is managing costs and generating income.

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its user base and increase sales, which is vital for sustaining its market position.

N/A

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

ZM Q2-2027 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

Focus on enhancing user experience and engagement.
Commitment to expanding into new markets and customer segments.
Plans to innovate and introduce new features to stay competitive.

Expectations

Wall Street Expectations

Bull Case

The optimistic view hinges on continued strong earnings surprises and robust revenue growth, suggesting that Zoom can maintain its leadership in the video conferencing space.

Bear Case

On the downside, concerns about market saturation and competition could lead to disappointing revenue figures, which may negatively impact investor sentiment.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the reported revenue growth rate this quarter?

This figure will be crucial in assessing Zoom's ability to attract and retain users in a competitive market.

How is user engagement trending compared to previous quarters?

Understanding user engagement is vital for predicting future revenue and assessing customer satisfaction.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Zoom's potential for user growth in emerging markets, which could drive stronger-than-expected revenue.

Supporting Evidence

Recent trends show increased demand for remote work solutions in various sectors.

Zoom's innovative features may attract new users despite competition.

Insider selling could indicate confidence in the company's long-term strategy rather than immediate performance.

Key Risk

If user engagement metrics show significant improvement, it could challenge the current cautious outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around Zoom's ability to sustain growth in a competitive environment.

Bull Confirmed If

Revenue growth of 15% year-over-year or better would confirm the bull case.

Bear Confirmed If

Revenue growth below 5% would signal a significant concern about market saturation.

Pre-Earnings Positioning

Options Market

Implied Move

±18.51%

Historical Avg

±1.8%

Pricing rich

The options market is pricing in a significant potential move, indicating that traders expect volatility around the earnings report.

Options are pricing ±18.5% while ZM has averaged ±1.8% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

49.6%

Calls (1.0M)P/C Ratio: 0.31Puts (400K)

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 and raises guidance, history suggests the stock could see a modest increase, confirming the company's growth narrative.

In-Line / Cautious

An in-line report with cautious commentary may lead to a muted response, reflecting ongoing market skepticism.

Miss

If the company misses expectations, history suggests a potential decline in stock price, as seen in previous quarters.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product features or enhancements.
2Insights into user growth in emerging markets.
3Management's view on competitive pressures and market trends.
4Details on customer retention rates and engagement metrics.
5Future guidance on revenue growth expectations.