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ZM Zoom Video Communications

Zoom Video Communications, Inc. is an American communications technology company headquartered in San Jose, California. It provides videotelephony and online chat services through a cloud-based peer-to-peer software platform and is used for teleconferencing, telecommuting, distance education, and social relations. Zoom's business strategy focuses on providing an easier to use product than competitors, as well as cost savings, which include minimizing computational costs at the infrastructure level and having a high degree of employee efficiency. Eric Yuan, a former Cisco engineer and executive, founded Zoom in 2011, and launched its software in 2013. Zoom's aggressive revenue growth, and perceived ease-of-use and reliability of its software, resulted in a $1 billion valuation in 2017, making it a "unicorn" company. The company first became profitable in 2019, and completed an initial public offering that year. The company joined the NASDAQ-100 stock index on April 30, 2020.

Company profile

Ticker
ZM
Exchange
Website
CEO
Eric 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 Dec 20
7 Mar 21
31 Jan 22
Quarter (USD)
Oct 20 Jul 20 Apr 20 Oct 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.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.03B 1.03B 1.03B 1.03B 1.03B 1.03B
Cash burn (monthly) 915.33K (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn)
Cash used (since last report) 3.86M n/a n/a n/a n/a n/a
Cash remaining 1.02B n/a n/a n/a n/a n/a
Runway (months of cash) 1119.7 n/a 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 Mar 21 Eschenbach Carl M. Class A Common Stock Sell Dispose S Yes Yes 357.8594 219 78.37K 74,803
4 Mar 21 Eschenbach Carl M. Class A Common Stock Sell Dispose S Yes Yes 356.69 300 107.01K 75,022
4 Mar 21 Eschenbach Carl M. Class A Common Stock Sell Dispose S Yes Yes 355.155 400 142.06K 75,322
4 Mar 21 Eschenbach Carl M. Class A Common Stock Sell Dispose S Yes Yes 353.8036 501 177.26K 75,722
4 Mar 21 Eschenbach Carl M. Class A Common Stock Sell Dispose S Yes Yes 352.96 1,500 529.44K 76,223
4 Mar 21 Eschenbach Carl M. Class A Common Stock Sell Dispose S Yes Yes 351.8059 1,942 683.21K 77,723
4 Mar 21 Eschenbach Carl M. Class A Common Stock Sell Dispose S Yes Yes 350.7655 1,891 663.3K 79,665
4 Mar 21 Eschenbach Carl M. Class A Common Stock Sell Dispose S Yes Yes 349.7697 2,126 743.61K 81,556
4 Mar 21 Eschenbach Carl M. Class A Common Stock Sell Dispose S Yes Yes 348.7802 413 144.05K 83,682
4 Mar 21 Eschenbach Carl M. Class A Common Stock Sell Dispose S Yes Yes 347.519 1,000 347.52K 84,095
71.7% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 891 861 +3.5%
Opened positions 193 230 -16.1%
Closed positions 163 73 +123.3%
Increased positions 337 295 +14.2%
Reduced positions 265 248 +6.9%
13F shares
Current Prev Q Change
Total value 48.57B 51.75B -6.1%
Total shares 142.58M 110.1M +29.5%
Total puts 14.23M 10.86M +30.9%
Total calls 9.91M 10.46M -5.2%
Total put/call ratio 1.4 1.0 +38.2%
Largest owners
Shares Value Change
MS Morgan Stanley 13.5M $4.55B -6.6%
Vanguard 11.76M $3.97B +8.7%
BLK Blackrock 10.72M $3.61B +20.2%
Shing Li Ka 9.86M $3.33B NEW
Hoi Shuen Solina Holly Chau 9.41M $3.17B NEW
Baillie Gifford & Co 6.61M $2.23B +4.9%
Emergence Capital Partners III 6.49M $2.19B NEW
STT State Street 3.71M $1.25B +6.5%
TROW T. Rowe Price 3.57M $1.21B +20.9%
Hillhouse Capital Management 2.98M $1.01B NEW
Largest transactions
Shares Bought/sold Change
Shing Li Ka 9.86M +9.86M NEW
Hoi Shuen Solina Holly Chau 9.41M +9.41M NEW
Emergence Capital Partners III 6.49M +6.49M NEW
SB Management 0 -3.83M EXIT
Hillhouse Capital Management 2.98M +2.98M NEW
Renaissance Technologies 2.39M -2.86M -54.5%
Hillhouse Capital Advisors 2.98M -2.03M -40.5%
BLK Blackrock 10.72M +1.8M +20.2%
Jennison Associates 1.35M +1.35M +44853.3%
Norges Bank 1.35M +1.35M NEW

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.
  • 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.
  • 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.
  • 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.
  • 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.
  • Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
  • 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 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.
  • 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 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 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.
  • 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.
  • 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 condensed 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.
  • 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.
Management Discussion
  • Item 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  • Form 10-Q. 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 Quarterly Report on Form 10-Q.
  • 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. junior Good
New words: admit, aforementioned, Ajit, allegedly, answer, beta, Brazil, broadly, Chairman, CID, Commissioner, cooperate, cooperated, CPRA, cryptography, de, default, fast, flat, fundraising, Geral, Lei, LGPD, navigate, OnZoom, penalty, plaintiff, pretax, reconsideration, refraining, remanded, rulemaking, turnover, vaccine, viral
Removed: roll, space

Patents

APP
Utility
Unique Watermark Generation and Detection During a Conference
25 Feb 21
The unique watermark system comprising: identifying a presenter attendee, a first recipient attendee, and a second recipient attendee through a video conferencing session; detecting the presenter attendee sharing the visual content with the first recipient attendee and the second recipient attendee; selecting a first unique watermark and a second unique watermark from the plurality of unique watermarks and assigning them to a first recipient attendee and a second recipient attendee, respectively; inserting the first unique watermark into the visual content for the first recipient attendee and the second unique watermark into the visual content for the second recipient attendee; and transmitting the visual content with the first unique watermark to the first recipient attendee and the visual content with the second unique watermark to the second recipient attendee, wherein the method is performed by one or more special-purpose computing devices for hosting the video conferencing session.
GRANT
Utility
Method and apparatus for capturing a group photograph during a video conferencing session
28 Dec 20
In various embodiments, a group photograph system coordinates and creates a group photograph of participants of a video conferencing session.
GRANT
Utility
Unique watermark generation and detection during a conference
14 Dec 20
The unique watermark system comprising: identifying a presenter attendee, a first recipient attendee, and a second recipient attendee through a video conferencing session; detecting the presenter attendee sharing the visual content with the first recipient attendee and the second recipient attendee; selecting a first unique watermark and a second unique watermark from the plurality of unique watermarks and assigning them to a first recipient attendee and a second recipient attendee, respectively; inserting the first unique watermark into the visual content for the first recipient attendee and the second unique watermark into the visual content for the second recipient attendee; and transmitting the visual content with the first unique watermark to the first recipient attendee and the visual content with the second unique watermark to the second recipient attendee, wherein the method is performed by one or more special-purpose computing devices for hosting the video conferencing session.
APP
Utility
Method and System for Elevating A Phone Call into A Video Conferencing Session
23 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
23 Sep 20
An apparatus and/or method discloses a video conference with enhanced audio quality using high-fidelity audio sharing (“HAS”).