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Zoom Video Communications (ZM)

Zoom Video Communications, Inc. brings teams together to get more done in a frictionless and secure video environment. Its easy, reliable, and innovative video-first unified communications platform provides video meetings, voice, webinars, and chat across desktops, phones, mobile devices, and conference room systems. Zoom helps enterprises create elevated experiences with leading business app integrations and developer tools to create customized workflows. Founded in 2011, Zoom is headquartered in San Jose, California, with offices around the world.

Company profile

Ticker
ZM
Exchange
Website
CEO
Eric Yuan
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Zoom Voice Communications, Inc. • ZVC UK LTD • ZVC Australia PTY LTD • ZVC Netherlands B.V. • Zoom Video Communications (Suzhou) Inc. • Saasbee Inc. (Hefei) Ltd. • SaasBee Software (Hangzhou) Co., Ltd. • ZVC France SAS • ZVC India PVT LTD • ZVC Canada LTD ...
IRS number
611648780

ZM stock data

Investment data

Data from SEC filings
Securities sold
Number of investors
2 long holdings
End of quarter 31 Mar 22
Value
 
#Shares
 
Prev Q
 
Change
%, QoQ
$76.49M 483.87K 483.87K 0
$71.9M 10M 10M 0
Holdings list only includes long positions. Only includes long positions.

Calendar

7 Mar 22
17 May 22
31 Jan 23
Quarter (USD) Jan 22 Oct 21 Jul 21 Apr 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jan 22 Jan 21 Jan 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.07B 1.07B 1.07B 1.07B 1.07B 1.07B
Cash burn (monthly) 89.81M 101.65M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 319.38M 361.49M n/a n/a n/a n/a
Cash remaining 753.97M 711.87M n/a n/a n/a n/a
Runway (months of cash) 8.4 7.0 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
4 May 22 Bawa Aparna Class A Common Stock Sell Dispose S Yes Yes 103.96 404 42K 86,664
3 May 22 Bawa Aparna Class A Common Stock Sell Dispose S Yes Yes 106.66 100 10.67K 87,068
3 May 22 Bawa Aparna Class A Common Stock Sell Dispose S Yes Yes 104.58 200 20.92K 87,168
3 May 22 Bawa Aparna Class A Common Stock Sell Dispose S Yes Yes 103.9044 900 93.51K 87,368
3 May 22 Bawa Aparna Class A Common Stock Sell Dispose S Yes Yes 102.943 800 82.35K 88,268
2 May 22 Janet Napolitano Class A Common Stock Option exercise Acquire M No No 0 25 0 672
2 May 22 Janet Napolitano Class A Common Stock Option exercise Acquire M No No 0 87 0 647
2 May 22 Janet Napolitano RSU Class A Common Stock Option exercise Dispose M No No 0 25 0 25
2 May 22 Janet Napolitano RSU Class A Common Stock Option exercise Dispose M No No 0 87 0 86
25 Apr 22 Steckelberg Kelly Class A Common Stock Sell Dispose S No Yes 100 6,700 670K 0
72.1% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 792 854 -7.3%
Opened positions 145 97 +49.5%
Closed positions 207 162 +27.8%
Increased positions 266 336 -20.8%
Reduced positions 264 254 +3.9%
13F shares Current Prev Q Change
Total value 37.91B 47.68B -20.5%
Total shares 182.11M 174.03M +4.6%
Total puts 23.89M 22.99M +3.9%
Total calls 20.56M 16.33M +25.9%
Total put/call ratio 1.2 1.4 -17.5%
Largest owners Shares Value Change
TROW T. Rowe Price 18.42M $3.39B -10.0%
Vanguard 13.11M $2.41B +0.4%
MS Morgan Stanley 12.56M $2.31B -4.2%
BLK Blackrock 10.38M $1.91B -1.0%
Shing Li Ka 9.86M $3.33B 0.0%
Hoi Shuen Solina Holly Chau 9.41M $3.17B 0.0%
Baillie Gifford & Co 7.83M $1.44B -1.6%
ARK Investment Management 6.9M $1.27B +56.1%
Emergence Capital Partners III 6.49M $2.19B 0.0%
Tiger Global Management 6.13M $1.13B +28.7%
Largest transactions Shares Bought/sold Change
ARK Investment Management 6.9M +2.48M +56.1%
HBCYF HSBC 2.5M +2.37M +1834.9%
Fisher Asset Management 2.27M +2.27M NEW
TROW T. Rowe Price 18.42M -2.05M -10.0%
Susquehanna International 1.18M -1.96M -62.5%
Tiger Global Management 6.13M +1.37M +28.7%
Nikko Asset Management Americas 3.67M +1.31M +55.7%
CMTDF Sumitomo Mitsui Trust 4.27M +1.28M +43.0%
Viking Global Investors 0 -1.18M EXIT
Coatue Management 950.65K -990.09K -51.0%

Financial report summary

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Competition
Cisco Systems8X8OomaRingCentralLogMeIn
Risks
  • Our business depends on our ability to attract new customers and hosts, retain and upsell additional products to existing customers, and upgrade free hosts to our paid offerings. Any decline in new customers and hosts, renewals, or upgrades would harm our business.
  • Our revenue growth rate has begun to decline and we expect our revenue growth rate to generally decline in future periods.
  • Interruptions, delays, or outages in service from our co-located data centers and a variety of other factors, including increased usage stemming from the COVID-19 pandemic, would impair the delivery of our services, require us to issue credits or pay penalties, and harm our business.
  • We operate in competitive markets, and we must continue to compete effectively.
  • Our quarterly results have fluctuated and may in the future fluctuate significantly and may not fully reflect the underlying performance of our business.
  • Failures in internet infrastructure or interference with broadband access could cause current or potential users to believe that our systems are unreliable, possibly leading our customers and hosts to switch to our competitors, or to cancel their subscriptions to our platform.
  • As we increase sales to large organizations, our sales cycles could lengthen, and we could experience greater deployment challenges.
  • We generate revenue from sales of subscriptions to our platform, and any decline in demand for our platform or for communications and collaboration technologies in general would harm our business.
  • We expect to increase our expenses in the future, which could decrease our profitability or prevent us from maintaining profitability.
  • The experience of our users depends upon the interoperability of our platform across devices, operating systems, and third-party applications that we do not control, and if we are not able to maintain and expand our relationships with third parties to integrate our platform with their solutions, our business may be harmed.
  • We may not be able to respond to rapid technological changes, extend our platform, or develop new features.
  • The failure to effectively develop and expand our marketing and sales capabilities could harm our ability to increase our customer base and achieve broader market acceptance of our platform.
  • Our security measures have been compromised in the past and may be compromised in the future. If our security measures are compromised in the future or if our information technology fails, this could harm our reputation, expose us to significant fines and liability, impair our sales, and harm our business. In addition, our products and services may be perceived as not being secure. This perception may result in customers and hosts curtailing or ceasing their use of our products, our incurring significant liabilities, and our business being harmed.
  • Our business depends on a strong brand, and if we are not able to maintain and enhance our brand, our ability to expand our base of users will be impaired and our business will be harmed.
  • We may not successfully manage our growth or plan for future growth.
  • Our business may be significantly affected by a change in the economy, including any resulting effect on consumer or business spending.
  • Our ability to sell subscriptions to our platform could be harmed by real or perceived material defects or errors in our platform.
  • If we were to lose the services of our Chief Executive Officer or other members of our senior management team, we may not be able to execute our business strategy.
  • The failure to attract and retain additional qualified personnel or to maintain our happiness-centric company culture could harm our business and culture and prevent us from executing our business strategy.
  • We have significant and expanding operations outside the United States, which may subject us to increased business, regulatory and economic risks that could harm our business.
  • Any failure to offer high-quality support for our customers and hosts may harm our relationships with our customers and hosts and, consequently, our business.
  • We utilize our network of resellers to sell our products and services, and our failure to effectively develop, manage, and maintain our indirect sales channels would harm our business.
  • Our results of operations, which are reported in U.S. dollars, could be adversely affected if currency exchange rates fluctuate substantially in the future.
  • Our sales to government entities and other government contractors are subject to a number of additional challenges and risks.
  • Our current products, as well as products, features, and functionality that we may introduce in the future, may not be widely accepted by our customers and hosts or may receive negative attention or may require us to compensate or reimburse third parties, any of which may lower our margins and harm our business.
  • If we experience excessive fraudulent activity or cannot meet evolving credit card association merchant standards, we could incur substantial costs and lose the right to accept credit cards for payment, which could cause our customer and paid host base to decline significantly.
  • We may have exposure to greater than anticipated tax liabilities, which could harm our business.
  • We have acquired and may continue to acquire other businesses or receive offers to be acquired, which could require significant management attention, disrupt our business, or dilute stockholder value.
  • We have a limited operating history at the current scale of our business, which makes it difficult to evaluate our prospects and future results of operations.
  • We rely on data from tools to calculate certain of our key business metrics. Real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business.
  • The actual or perceived failure by us, our customers, partners, or vendors to comply with stringent and evolving privacy, data protection, and information security laws, regulations, standards, policies, and contractual obligations could harm our reputation and business or subject us to significant fines and liability.
  • Changes in government trade policies, including the imposition of tariffs and export restrictions, could limit our ability to sell our products to certain customers, which may materially adversely affect our sales and results of operations.
  • We may be subject to additional liabilities on past sales for taxes, surcharges, and fees.
  • We are subject to governmental export and import controls that could impair our ability to compete in international markets due to licensing requirements and subject us to liability if we are not in compliance with applicable laws.
  • We may be subject to, or assist law enforcement with enforcement of, a variety of U.S. and international laws that could result in claims, increase the cost of operations or otherwise harm our business due to changes in the laws, changes in the interpretations of the laws, greater enforcement of the laws, or investigations into compliance with the laws.
  • Zoom Phone is subject to U.S. federal and international regulation, and other products we may introduce in the future may also be subject to U.S. federal, state, or international laws, rules, and regulations. Any failure to comply with such laws, rules, and regulations could harm our business and expose us to liability.
  • We are currently, and may be in the future, party to intellectual property rights claims and other litigation matters, which, if resolved adversely, could harm our business.
  • Our failure to protect our intellectual property rights and proprietary information could diminish our brand and other intangible assets.
  • Our use of third-party open source software could negatively affect our ability to offer and sell subscriptions to our platform and subject us to possible litigation.
  • The trading price of our Class A common stock may be volatile, and you could lose all or part of your investment.
  • The dual class structure of our common stock as contained in our amended and restated certificate of incorporation has the effect of concentrating voting control with those stockholders who held our stock prior to our IPO, including our executive officers, employees, and directors and their affiliates, limiting your ability to influence corporate matters.
  • Future sales and issuances of our capital stock or rights to purchase capital stock could result in additional dilution of the percentage ownership of our stockholders and could cause our stock price to decline.
  • Substantial future sales of shares of our Class A common stock and Class B common stock could cause the market price of our Class A common stock to decline.
  • Provisions in our corporate charter documents and under Delaware law may prevent or frustrate attempts by our stockholders to change our management or hinder efforts to acquire a controlling interest in us, and the market price of our Class A common stock may be lower as a result.
  • Our amended and restated certificate of incorporation designates the Court of Chancery of the State of Delaware and the federal district courts of the United States of America as the exclusive forums for certain disputes between us and our stockholders, which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers, or employees.
  • We do not intend to pay dividends for the foreseeable future.
  • Estimates of our market opportunity and forecasts of market growth may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all.
  • Our business could be disrupted by catastrophic events.
  • We are subject to risks associated with our strategic investments, including partial or complete loss of invested capital. Significant changes in the fair value of our investment portfolio could negatively impact our financial results.
  • Our reported results of operations may be adversely affected by changes in accounting principles generally accepted in the United States.
  • We may need additional capital, and we cannot be certain that additional financing will be available on favorable terms, or at all.
  • If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate consolidated financial statements or comply with applicable regulations could be impaired.
  • Our Class A common stock market price and trading volume could decline if securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business.
  • We incur costs and demands upon management as a result of complying with the laws and regulations affecting public companies in the United States, which may harm our business.
Management Discussion
  • Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  • You should read the following discussion and analysis of our financial condition and results of operations together with the consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed in the section titled “Risk Factors” and in other parts of this Annual Report on Form 10-K.
  • Our mission is to make video communications frictionless and secure.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Good