Mon Nov 25 21:10:00 UTC 2024: **Zoom Poised for Earnings Report; Analysts Predict Steady Growth**

SAN FRANCISCO, October 25, 2024 – Video conferencing giant Zoom (NASDAQ:ZM) is set to release its third-quarter earnings report tomorrow afternoon, with analysts anticipating continued, albeit moderate, growth. The company exceeded revenue expectations last quarter, reporting $1.16 billion in revenue, a 2.1% year-on-year increase, and significantly outperforming analyst estimates for billings and EBITDA. They added 50 enterprise customers paying over $100,000 annually.

For the current quarter, analysts predict a 2.4% year-over-year revenue increase, reaching $1.16 billion, and adjusted earnings of $1.31 per share. Analyst estimates have remained largely unchanged in the past month, suggesting confidence in Zoom’s continued performance. Zoom has a strong track record, exceeding Wall Street’s revenue expectations in most recent quarters.

Positive sentiment in the video conferencing sector is reflected in the recent performance of Zoom’s peers. Five9 saw robust year-over-year revenue growth of 14.8%, while 8×8 reported a slight decline but still beat expectations. Both stocks experienced significant post-earnings gains. Zoom’s stock price itself is up 17.7% over the past month, trading at $86.95, slightly above the average analyst price target of $77.71. While the overall outlook is positive, investors will be watching closely to see if Zoom can maintain its growth trajectory in a potentially slowing market.

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