Company profile

Ticker
ZM
Exchange
Website
CEO
Eric S. Yuan
Employees
Incorporated
Location
Fiscal year end
SEC CIK
IRS number
611648780

ZM stock data

(
)

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

3 Sep 20
27 Oct 20
31 Jan 21

News

Quarter (USD) Jul 20 Apr 20 Oct 19 Jul 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jan 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
16 Oct 20 Bawa Aparna Class A Common Stock Sell Dispose S Yes 544.07 7,500 4.08M 181,297
12 Oct 20 Pelosi Janine Class A Common Stock Sell Dispose S Yes 504.8789 2,041 1.03M 1,388
12 Oct 20 Pelosi Janine Class A Common Stock Sell Dispose S Yes 502.9909 877 441.12K 3,429
12 Oct 20 Pelosi Janine Class A Common Stock Sell Dispose S Yes 501.8615 704 353.31K 4,306
12 Oct 20 Pelosi Janine Class A Common Stock Sell Dispose S Yes 501.038 1,154 578.2K 5,010
12 Oct 20 Pelosi Janine Class A Common Stock Sell Dispose S Yes 499.5331 800 399.63K 6,164
12 Oct 20 Pelosi Janine Class A Common Stock Sell Dispose S Yes 498.6715 1,197 596.91K 6,964
12 Oct 20 Pelosi Janine Class A Common Stock Sell Dispose S Yes 497.9162 1,002 498.91K 8,161
12 Oct 20 Pelosi Janine Class A Common Stock Sell Dispose S Yes 496.6078 900 446.95K 9,163
12 Oct 20 Pelosi Janine Class A Common Stock Sell Dispose S Yes 495.6813 700 346.98K 10,063
54.8% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 700 500 +40.0%
Opened positions 287 313 -8.3%
Closed positions 87 48 +81.3%
Increased positions 190 109 +74.3%
Reduced positions 169 57 +196.5%
13F shares
Current Prev Q Change
Total value 27.02B 11.67B +131.6%
Total shares 106.66M 80.82M +32.0%
Total puts 7.65M 5.48M +39.6%
Total calls 8.76M 6.73M +30.3%
Total put/call ratio 0.9 0.8 +7.2%
Largest owners
Shares Value Change
MS Morgan Stanley 15.15M $3.84B +24.3%
Vanguard 10.28M $2.61B +164.4%
Renaissance Technologies 7.26M $1.84B +161.2%
Hillhouse Capital Advisors 6.86M $1.74B +10.7%
Baillie Gifford & Co 6.67M $1.69B -7.0%
BLK BlackRock 4.92M $1.25B +326.5%
Artisan Partners Limited Partnership 4.47M $1.13B -30.0%
STT State Street 2.68M $678.88M +4836.2%
Coatue Management 2.52M $639.25M +323.1%
N Price T Rowe Associates 2.36M $598.87M +189.1%
Largest transactions
Shares Bought/sold Change
Vanguard 10.28M +6.39M +164.4%
Renaissance Technologies 7.26M +4.48M +161.2%
BLK BlackRock 4.92M +3.76M +326.5%
MS Morgan Stanley 15.15M +2.97M +24.3%
CRM salesforce.com 0 -2.78M EXIT
STT State Street 2.68M +2.62M +4836.2%
Coatue Management 2.52M +1.93M +323.1%
Artisan Partners Limited Partnership 4.47M -1.91M -30.0%
Lone Pine Capital 1.69M +1.69M NEW
N Price T Rowe Associates 2.36M +1.54M +189.1%

Financial report summary

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Competition
Cisco Systems8x8RingCentralLogMeIn
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.
  • We have a limited operating history, which makes it difficult to evaluate our prospects and future results of operations.
  • 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.
  • We may not be able to sustain our revenue growth rate in the future.
  • Our quarterly results may 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 have experienced net losses in the past, and we expect to increase our expenses in the future, which could 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.
  • 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.
  • 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 are continuing to expand our operations outside the United States, where we may be subject to increased business and economic risks that could harm our business.
  • 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 recognize revenue from subscriptions to our platform over the terms of these subscriptions. Consequently, increases or decreases in new sales may not be immediately reflected in our results of operations and may be difficult to discern.
  • 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.
  • Our results of operations may be harmed if we are required to collect sales or other related taxes for our subscription services in jurisdictions where we have not historically done so.
  • We may be subject to 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 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 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.
  • 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.
  • 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.
  • 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.
  • Our business could be disrupted by catastrophic events.
  • We may have exposure to greater than anticipated tax liabilities, which could harm our business.
  • Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
  • 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.
  • 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.
  • If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate condensed consolidated financial statements or comply with applicable regulations could be impaired.
  • 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.
  • 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 initial public offering, 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.
  • 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.
  • We are an “emerging growth company,” and we intend to comply only with reduced disclosure requirements applicable to emerging growth companies. As a result, our Class A common stock could be less attractive to investors.
  • We do not intend to pay dividends for the foreseeable future.
Management Discussion
  • Revenue for the three months ended July 31, 2020 increased by $517.7 million, or 355%, compared to the three months ended July 31, 2019. Due to the COVID-19 pandemic, there was an increase in usage of our services, as many organizations around the world started utilizing our platform to continue their operations remotely. As a result, the increase in revenue was primarily due to subscription services provided to new customers, which accounted for approximately 81% of the increase, and to subscription services provided to existing customers, which accounted for approximately 19% of the increase.
  • Cost of revenue for the three months ended July 31, 2020 increased by $164.4 million, or 589%, compared to the three months ended July 31, 2019. Due to the COVID-19 pandemic, there was an increase in usage of our services as many organizations and healthcare and educational institutions around the world started utilizing our platform to continue their operations remotely. This increase in usage resulted in an increase of $146.9 million in costs related to third-party cloud hosting, integrated third-party PSTN services, and our co-located data centers to support the increase in customers and expanded use of our video-first communications platform by existing customers. The remaining increase was primarily due to an increase of $12.1 million in personnel-related expenses mainly driven by additional headcount, which includes a $5.8 million increase in stock-based compensation expense.
  • Gross margin decreased to 71% for the three months ended July 31, 2020 from 81% for the three months ended July 31, 2019. The decrease in gross margin was due to higher incremental cost from leveraging third-party cloud hosting providers to meet the significant increase in usage as well as the higher percentage of usage from free users.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Good
New words: accuse, aggressively, Aid, appointed, assembled, assumed, choice, comment, conclusion, contrary, counsel, DC, deadline, donor, entertain, exact, facially, fewer, forma, forthcoming, franchise, hamper, HIPAA, holdback, Hong, Justice, Kong, led, makeup, moderation, motion, neutrality, offensive, outsourced, petition, prioritizing, properly, prudent, punitive, ratio, recoverable, rehearing, rejected, repealed, revision, segment, social, sound, speed, statute, stayed, sued, supervision, suspended, tangible, transmitted, treated, unaffiliated, usability, venue, viability, viable, warrant
Removed: facilitating, narrow, outage, structured, unconsolidated

Patents

APP
Utility
Method and System for Elevating A Phone Call into A Video Conferencing Session
24 Sep 20
An apparatus and/or method discloses an automatic call-to-conference elevation (“ACE”) capable of facilitating a transition from a phone call to a video conference.
APP
Utility
Method and System for Facilitating High-Fidelity Audio Sharing
24 Sep 20
An apparatus and/or method discloses a video conference with enhanced audio quality using high-fidelity audio sharing (“HAS”).
APP
Utility
Method and Apparatus for Capturing a Group Photograph During a Video Conferencing Session
24 Sep 20
In various embodiments, a group photograph system coordinates and creates a group photograph of participants of a video conferencing session.
APP
Utility
Adaptive Screen Encoding Control
23 Jul 20
An adaptive screen encoding method comprising: using a computer, creating and storing, in computer memory, a plurality of conditions for use by a server configured to determine which of picture coding type to select; detecting a current picture by a sender for a content type including textual content, graphical content, and natural image content; determining a percentage of static macroblocks corresponding to the current picture; selecting the picture coding type based on the content type, the plurality of conditions, and the percentage of static macroblocks, wherein the method is performed by one or more special-purpose computing devices.
GRANT
Utility
Adaptive screen encoding control
31 Mar 20
An adaptive screen encoding method comprising: using a computer, creating and storing, in computer memory, a plurality of conditions for use by a server configured to determine which of picture coding type to select; detecting a current picture by a sender for a content type including textual content, graphical content, and natural image content; determining a percentage of static macroblocks corresponding to the current picture; selecting the picture coding type based on the content type, the plurality of conditions, and the percentage of static macroblocks, wherein the method is performed by one or more special-purpose computing devices.