Equity Profile

ZM

Zoom Communications, Inc.

Information TechnologyApplication Software$32.2B

Aug20Thu

Pre-Earnings Brief

UpcomingQ2-2027After Close5:00 PM EDT

Company Snapshot

Zoom Communications, Inc. is a leading provider of video conferencing and communication software, primarily known for its Zoom platform....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a crucial indicator of the company's profitability and is closely watched by investors.

$1.48

Revenue

Revenue growth reflects the company's ability to attract and retain customers in a competitive market.

$1.3B

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 and communication software, primarily known for its Zoom platform. As a key player in the Information Technology sector, it has benefited from the growing demand for remote communication solutions, especially in a post-pandemic world.

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 beating expectations of $0.93, showcasing strong profitability. However, the stock experienced a slight decline the following day, indicating mixed market reactions despite the positive earnings surprise.

Management Promises & Guidance

Continue to innovate and enhance the user experience on the Zoom platform.
Focus on expanding enterprise customer adoption.
Maintain strong customer retention rates.

Expectations

Wall Street Expectations

Analysts are generally optimistic about Zoom's upcoming earnings, expecting continued strong performance based on previous results. However, there are concerns about sustaining growth in a competitive landscape.

Bull Case

If Zoom delivers strong EPS and revenue growth, it could signal robust demand for its services, leading to increased investor confidence.

Bear Case

A miss on earnings or revenue could raise concerns about market saturation and competition, potentially leading to a negative reaction in the stock price.

Key Metrics to Watch

Earnings Per Share (EPS)

$1.48

EPS is a crucial indicator of the company's profitability and is closely watched by investors.

Revenue

$1.3B

Revenue growth reflects the company's ability to attract and retain customers in a competitive market.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Zoom's EPS exceed the consensus estimate of $1.48?

A strong EPS could reinforce investor confidence in Zoom's profitability and growth potential.

How does Zoom plan to sustain revenue growth in a competitive environment?

Insights into growth strategies will be crucial for understanding the company's future performance and market position.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate Zoom's ability to innovate and expand its enterprise offerings, which could drive stronger-than-expected growth.

Supporting Evidence

Zoom's recent history of beating EPS estimates suggests a potential for continued strong performance.

The company's focus on enhancing its platform could attract new enterprise customers, boosting revenue.

Options pricing indicates a significant expected move, suggesting that traders anticipate a more impactful earnings report.

Key Risk

If Zoom's enterprise revenue growth exceeds expectations, it could challenge current bearish sentiments.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as it will indicate whether Zoom can maintain its growth trajectory amid increasing competition.

Bull Confirmed If

An EPS of $1.55 or higher, coupled with revenue growth above $1.3B, would confirm the bullish case.

Bear Confirmed If

An EPS below $1.45 or stagnant revenue would validate bearish concerns about market challenges.

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 announcement.

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)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zoom beats expectations, history suggests the stock could see a modest reaction, averaging around -0.11% the next day, but could confirm strong growth narratives.

In-Line / Cautious

If results are in line with expectations, the stock may experience a muted response, reflecting cautious investor sentiment.

Miss

A miss could lead to a more significant decline, with historical patterns suggesting an average drop of around -0.11% following earnings misses.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on enterprise customer growth and retention rates.
2Any new product innovations or features that could enhance user experience.
3Management's outlook on competition and market dynamics.
4Insights into customer feedback and satisfaction levels.
5Details on cost management and operational efficiencies.

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 and communication software, primarily known for its Zoom platform....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a crucial indicator of the company's profitability and is closely watched by investors.

$1.48

Revenue

Revenue growth reflects the company's ability to attract and retain customers in a competitive market.

$1.3B

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

Continue to innovate and enhance the user experience on the Zoom platform.
Focus on expanding enterprise customer adoption.
Maintain strong customer retention rates.

Expectations

Wall Street Expectations

Bull Case

If Zoom delivers strong EPS and revenue growth, it could signal robust demand for its services, leading to increased investor confidence.

Bear Case

A miss on earnings or revenue could raise concerns about market saturation and competition, potentially leading to a negative reaction in the stock price.

Key Metrics to Watch

Earnings Per Share (EPS)

$1.48

EPS is a crucial indicator of the company's profitability and is closely watched by investors.

Revenue

$1.3B

Revenue growth reflects the company's ability to attract and retain customers in a competitive market.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Zoom's EPS exceed the consensus estimate of $1.48?

A strong EPS could reinforce investor confidence in Zoom's profitability and growth potential.

How does Zoom plan to sustain revenue growth in a competitive environment?

Insights into growth strategies will be crucial for understanding the company's future performance and market position.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus may underestimate Zoom's ability to innovate and expand its enterprise offerings, which could drive stronger-than-expected growth.

Supporting Evidence

Zoom's recent history of beating EPS estimates suggests a potential for continued strong performance.

The company's focus on enhancing its platform could attract new enterprise customers, boosting revenue.

Options pricing indicates a significant expected move, suggesting that traders anticipate a more impactful earnings report.

Key Risk

If Zoom's enterprise revenue growth exceeds expectations, it could challenge current bearish sentiments.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as it will indicate whether Zoom can maintain its growth trajectory amid increasing competition.

Bull Confirmed If

An EPS of $1.55 or higher, coupled with revenue growth above $1.3B, would confirm the bullish case.

Bear Confirmed If

An EPS below $1.45 or stagnant revenue would validate bearish concerns about market challenges.

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 announcement.

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)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zoom beats expectations, history suggests the stock could see a modest reaction, averaging around -0.11% the next day, but could confirm strong growth narratives.

In-Line / Cautious

If results are in line with expectations, the stock may experience a muted response, reflecting cautious investor sentiment.

Miss

A miss could lead to a more significant decline, with historical patterns suggesting an average drop of around -0.11% following earnings misses.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on enterprise customer growth and retention rates.
2Any new product innovations or features that could enhance user experience.
3Management's outlook on competition and market dynamics.
4Insights into customer feedback and satisfaction levels.
5Details on cost management and operational efficiencies.