Equity Profile

ZM

Zoom Communications, Inc.

Information TechnologyApplication Software$26.9B

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 video meeting platform....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and will show how well Zoom is managing its costs and revenue.

Expected to be around $1.55

Revenue Growth

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

Expected to show a positive trend compared to previous quarters

1 more metrics, 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 video meeting platform. As part of the Information Technology sector, Zoom plays a crucial role in facilitating remote work and digital collaboration, which have become increasingly important in today's business landscape.

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 exceeding expectations by nearly 66%. However, the stock reacted negatively, dropping 2.69% the following day, indicating market skepticism despite strong earnings.

Management Promises & Guidance

Focus on expanding enterprise solutions.
Commitment to enhancing user experience and platform features.
Plans to explore new markets and customer segments.

Expectations

Wall Street Expectations

Overall, analysts expect Zoom to continue its trend of beating earnings estimates, but there is caution regarding revenue growth and customer retention.

Bull Case

If Zoom delivers strong EPS and shows robust revenue growth, it could signal a strong recovery in demand for its services, boosting investor confidence.

Bear Case

If revenue growth falls short or customer numbers stagnate, it could raise concerns about the company's long-term growth prospects in a competitive environment.

Key Metrics to Watch

Earnings Per Share (EPS)

Expected to be around $1.55

EPS is a key indicator of the company's profitability and will show how well Zoom is managing its costs and revenue.

Revenue Growth

Expected to show a positive trend compared to previous quarters

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

Customer Growth

Expected to indicate continued demand for its services

An increase in customer numbers is vital for Zoom's long-term sustainability and market position.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected revenue growth rate for the upcoming quarter?

Revenue growth is critical for assessing Zoom's ability to maintain its market position and attract new customers.

How many new customers were added in the last quarter?

Customer growth is a key indicator of demand for Zoom's services and its competitive standing in the market.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Zoom's potential for customer growth, especially as remote work continues to be a priority for many businesses.

Supporting Evidence

Zoom has consistently beaten EPS estimates, indicating stronger-than-expected performance.

The options market is pricing in a larger move than historical averages suggest, indicating potential for a surprise.

Recent trends in remote work suggest sustained demand for video conferencing solutions.

Key Risk

If customer growth exceeds expectations, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis revolves around Zoom's ability to sustain growth in a post-pandemic environment where competition is intensifying.

Bull Confirmed If

Revenue growth of +15% year-over-year or better would confirm strong demand and market confidence.

Bear Confirmed If

Revenue growth of less than 5% would raise significant concerns about customer retention and market competitiveness.

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, suggesting that investors are anticipating volatility around the earnings report.

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)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Information Technology

n=30

Fade rate: 4 of 9 (44%)

This setup has occurred 30 times across Information Technology in the last 2 years. 4 of 9 faded and 5 held — no strong directional bias after the initial reaction. The average absolute 1-day move is 4.3%, with a raw directional average of -0.4% (modestly negative historical bias).

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 increase, confirming strong demand and operational efficiency.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may remain flat as investors await clearer signals.

Miss

A miss could lead to a decline, with history suggesting a potential drop of around 1.84% based on past performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on customer retention rates and new customer acquisitions.
2Insights into revenue growth expectations for the next quarter.
3Details on new product features or enhancements.
4Management's outlook on the competitive landscape.
5Any commentary on the impact of macroeconomic factors on business performance.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

No charge today · Auto-bills $8/mo after 7 days · Cancel anytime

More Earnings This Week

5 Reports

Fabrinet

Company Snapshot

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

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and will show how well Zoom is managing its costs and revenue.

Expected to be around $1.55

Revenue Growth

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

Expected to show a positive trend compared to previous quarters

1 more metrics, 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

Focus on expanding enterprise solutions.
Commitment to enhancing user experience and platform features.
Plans to explore new markets and customer segments.

Expectations

Wall Street Expectations

Overall, analysts expect Zoom to continue its trend of beating earnings estimates, but there is caution regarding revenue growth and customer retention.

Bull Case

If Zoom delivers strong EPS and shows robust revenue growth, it could signal a strong recovery in demand for its services, boosting investor confidence.

Bear Case

If revenue growth falls short or customer numbers stagnate, it could raise concerns about the company's long-term growth prospects in a competitive environment.

Key Metrics to Watch

Earnings Per Share (EPS)

Expected to be around $1.55

EPS is a key indicator of the company's profitability and will show how well Zoom is managing its costs and revenue.

Revenue Growth

Expected to show a positive trend compared to previous quarters

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

Customer Growth

Expected to indicate continued demand for its services

An increase in customer numbers is vital for Zoom's long-term sustainability and market position.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected revenue growth rate for the upcoming quarter?

Revenue growth is critical for assessing Zoom's ability to maintain its market position and attract new customers.

How many new customers were added in the last quarter?

Customer growth is a key indicator of demand for Zoom's services and its competitive standing in the market.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Zoom's potential for customer growth, especially as remote work continues to be a priority for many businesses.

Supporting Evidence

Zoom has consistently beaten EPS estimates, indicating stronger-than-expected performance.

The options market is pricing in a larger move than historical averages suggest, indicating potential for a surprise.

Recent trends in remote work suggest sustained demand for video conferencing solutions.

Key Risk

If customer growth exceeds expectations, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis revolves around Zoom's ability to sustain growth in a post-pandemic environment where competition is intensifying.

Bull Confirmed If

Revenue growth of +15% year-over-year or better would confirm strong demand and market confidence.

Bear Confirmed If

Revenue growth of less than 5% would raise significant concerns about customer retention and market competitiveness.

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, suggesting that investors are anticipating volatility around the earnings report.

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)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Information Technology

n=30

Fade rate: 4 of 9 (44%)

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 increase, confirming strong demand and operational efficiency.

In-Line / Cautious

If results are in line but management provides cautious commentary, the stock may remain flat as investors await clearer signals.

Miss

A miss could lead to a decline, with history suggesting a potential drop of around 1.84% based on past performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on customer retention rates and new customer acquisitions.
2Insights into revenue growth expectations for the next quarter.
3Details on new product features or enhancements.
4Management's outlook on the competitive landscape.
5Any commentary on the impact of macroeconomic factors on business performance.