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Upturn AI SWOT - About
ZM 
Zoom Video Communications Inc (ZM)
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Upturn Advisory Summary
04/01/2025: ZM (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -38.5% | Avg. Invested days 38 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 22.59B USD | Price to earnings Ratio 23.06 | 1Y Target Price 91.08 |
Price to earnings Ratio 23.06 | 1Y Target Price 91.08 | ||
Volume (30-day avg) 2981711 | Beta 0.25 | 52 Weeks Range 55.06 - 92.80 | Updated Date 04/1/2025 |
52 Weeks Range 55.06 - 92.80 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.21 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 21.65% | Operating Margin (TTM) 17.6% |
Management Effectiveness
Return on Assets (TTM) 4.87% | Return on Equity (TTM) 11.92% |
Valuation
Trailing PE 23.06 | Forward PE 13.53 | Enterprise Value 14789824335 | Price to Sales(TTM) 4.84 |
Enterprise Value 14789824335 | Price to Sales(TTM) 4.84 | ||
Enterprise Value to Revenue 3.17 | Enterprise Value to EBITDA 15.8 | Shares Outstanding 262754000 | Shares Floating 262079891 |
Shares Outstanding 262754000 | Shares Floating 262079891 | ||
Percent Insiders 0.19 | Percent Institutions 73.92 |
Analyst Ratings
Rating 3.7 | Target Price 92.15 | Buy 2 | Strong Buy 11 |
Buy 2 | Strong Buy 11 | ||
Hold 19 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Zoom Video Communications Inc
Company Overview
History and Background
Zoom Video Communications Inc. was founded in 2011 by Eric Yuan and launched its video conferencing platform in 2013. It gained significant traction in the enterprise market before experiencing explosive growth during the COVID-19 pandemic as remote work and online education became widespread.
Core Business Areas
- Zoom Meetings: Cloud-based video conferencing and collaboration platform for meetings, webinars, and online events.
- Zoom Rooms: Software-based conference room solution for video meetings and collaboration in physical spaces.
- Zoom Phone: Cloud-based phone system integrated with the Zoom platform.
- Zoom Contact Center: Omnichannel contact center solution for customer support and engagement.
- Zoom Events: Platform for hosting virtual and hybrid events.
Leadership and Structure
Eric S. Yuan is the founder and CEO. The company has a traditional corporate structure with departments for engineering, sales, marketing, finance, and operations. They have a Board of Directors which provides counsel.
Top Products and Market Share
Key Offerings
- Zoom Meetings: Core video conferencing service, competing with Microsoft Teams, Google Meet, and Webex. Estimated market share fluctuates, but Zoom is considered a leader. No official market share numbers publicly available. Zoom Meetings generates the majority of Zoom's overall revenue, approximately 65% - 75% of their revenue in a given year. Competitors: Microsoft, Google, Cisco, GoTo.
- Zoom Phone: Cloud-based phone system integrated with Zoom's platform. Market share is growing but smaller than Zoom Meetings. Competitors: RingCentral, 8x8, Microsoft Teams.
- Zoom Rooms: Conference room solution for in-office meetings and hybrid environments. Market share is significant within dedicated conference room solutions. Competitors: Cisco, Logitech, Poly.
Market Dynamics
Industry Overview
The video conferencing and unified communications market is competitive and growing, driven by remote work, hybrid work models, and increasing demand for virtual collaboration tools.
Positioning
Zoom is a leading player in the video conferencing market, known for its ease of use, reliability, and scalability. It faces competition from larger tech companies with broader product suites.
Total Addressable Market (TAM)
The unified communications and collaboration market is estimated to be over $50 billion. Zoom is well-positioned to capture a significant portion of this TAM by expanding its product offerings and targeting different customer segments.
Upturn SWOT Analysis
Strengths
- Ease of use
- Scalability
- Reliability
- Strong brand recognition
- Large user base
Weaknesses
- Security concerns (historically, but addressed)
- Reliance on freemium model
- Competition from larger companies
- Concerns on future growth given post-pandemic pull-back.
Opportunities
- Expanding product offerings (e.g., Zoom Phone, Zoom Contact Center)
- Targeting new customer segments (e.g., SMBs, healthcare, education)
- Integrating with other business applications
- Continued growth of remote and hybrid work
Threats
- Increased competition
- Economic downturn
- Security breaches
- Changes in technology
- Shift back to in-person work
Competitors and Market Share
Key Competitors
- MSFT
- GOOG
- CSCO
Competitive Landscape
Zoom's advantages include its ease of use and strong brand recognition. Its disadvantages include its smaller size compared to Microsoft and Google, which offer integrated solutions and are able to price much better, which may push Zoom out of the market. The space remains fragmented due to a wide variety of specialized offerings.
Major Acquisitions
Workvivo
- Year: 2023
- Acquisition Price (USD millions): 684
- Strategic Rationale: Enhance employee experience and engagement capabilities.
Growth Trajectory and Initiatives
Historical Growth: Exponential growth during the pandemic, followed by slower growth as the world returned to normal.
Future Projections: Analysts predict moderate revenue growth as Zoom expands its product offerings and targets new markets.
Recent Initiatives: Focus on enterprise solutions, expanding Zoom Phone and Zoom Contact Center, and investing in AI and automation.
Summary
Zoom faces mixed prospects. Its ease of use and brand recognition are strengths, but competition from tech giants Microsoft and Google pose a threat. The company's growth has slowed since the pandemic boom. Expanding into new products like Zoom Phone and Contact Center is crucial for future growth. A healthy balance sheet enables continued investment and innovation.
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Sources and Disclaimers
Data Sources:
- Company Filings
- Analyst Reports
- Industry Research
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share estimates are approximate and may vary depending on the source.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Zoom Video Communications Inc
Exchange NASDAQ | Headquaters San Jose, CA, United States | ||
IPO Launch date 2019-04-18 | Founder, President, CEO & Chairman Mr. Eric S. Yuan | ||
Sector Technology | Industry Software - Application | Full time employees 7412 | Website https://www.zoom.com |
Full time employees 7412 | Website https://www.zoom.com | ||
Zoom Communications Inc. provides an Artificial Intelligence-first work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Mail and Calendar; Zoom Workflow Automation, a no-code workflow builder that helps users build workflows across Zoom Workplace and third-party applications; Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; and Zoom Clips for capturing video and screen content. In addition, the company offers Zoom Contact Center, an omnichannel contact center solution; Zoom Revenue Accelerator, a conversation intelligence software for Zoom Meetings and Zoom Phone; Zoom Events to manage, host, market, and report on all of virtual and hybrid events; Zoom Sessions that allows customers to use the signature features; and Zoom Webinars which supports interactive video presentations to large audiences. Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Rooms, a software-based conference room system; Workspace Reservation; Zoom Developer Platform; App Marketplace which integrates platform with other applications, platforms, websites, and services; and Zoom Apps. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Video Communications, Inc. and changed its name to Zoom Communications, Inc. in November 2024. The company was incorporated in 2011 and is headquartered in San Jose, California.
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