Zoom Video Communications Expected to Report Lower Net Profit – Earnings Overview

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By Denny Jacob

Zoom Video Communications Inc. is expected to report its first quarter results for fiscal 2023 after the market closes on Monday. Here’s what you need to know:

ADJUSTED EARNINGS: The video conferencing apps company is expected to report adjusted earnings of 88 cents per share, according to FactSet.

REVENUES: The San Jose, Calif.-based company is expected to report revenue of $1.07 billion, up from $956.2 million a year ago, according to FactSet.

NET INCOME: Zoom Video Communications is expected to post net income of $115.1 million for the quarter, compared to $227.4 million in net income a year earlier, according to FactSet.

WHAT TO WATCH:

–DEMAND: After becoming a staple for businesses and consumers during the Covid-19 pandemic, demand for the Zoom platform will be closely watched as pandemic conditions continue to recede and its entrenchment in daily life will diminish. Investors will look at metrics that relate to Zoom’s customer base, such as the number of customers with more than 10 employees.

–HYBRID: As businesses begin to reintegrate their employees into the office despite the uncertainty surrounding the ongoing pandemic, the number of businesses embracing hybrid work operations will be key for Zoom. The company said it believes hybrid working is one of three pillars of its strategy to drive future growth. But it is fighting for market share against companies like Microsoft Corp. and Meta Platforms Inc., formerly known as Facebook. Zoom can offer guidance on what it sees and hears when it comes to hybrid working.

–GROWTH: Zoom CEO Eric Yuan said on a previous earnings call that the company has been working to evolve into a multi-product platform from a meetings company. Extensive offerings such as its contact center and cloud-based telephony business, Zoom Phone, are areas it seeks to explore and expand. Investors will seek feedback from the company on the progress of these efforts.


Write to Denny Jacob at denny.jacob@wsj.com

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