Video conferencing platform Zoom (NASDAQ:ZM) reported Q1 CY2025 results beating Wall Street’s revenue expectations, with sales up 2.9% year on year to $1.17 billion. Guidance for next quarter’s revenue was better than expected at $1.20 billion at the midpoint, 0.6% above analysts’ estimates. Its non-GAAP profit of $1.43 per share was 9.5% above analysts’ consensus estimates.
Zoom stock climbed after the communications software maker reported Q1 earnings that topped estimates while revenue guidance edged by Wall Street targets.
Zoom Inc. (NASDAQ:ZM) reports Q1 earnings after market close Wed., with EPS of $1.31 & revenue of $1.17B expected. Stock up 17.5% in past month but down 29.7% YOY. Analysts see 7% upside.
U.S. equities trading was mixed on Wednesday, with major indices showing limited movement by midday as investors remained cautious amid renewed concerns over fiscal policy, which pressured Treasury bonds and the dollar.
Software is rapidly reducing operating expenses for businesses. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital.
But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 7.3% over the last six months. This drop was worse than the S&P 500’s 4.7% fall.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the video conferencing industry, including Zoom (NASDAQ:ZM) and its peers.
Zoom has been treading water for the past six months, recording a small return of 3.6% while holding steady at $75.22. However, the stock is beating the S&P 500’s 5.3% decline during that period.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how RingCentral (NYSE:RNG) and the rest of the video conferencing stocks fared in Q4.
