Zoom Video Stock Prediction Following Q2 Results

• Zoom Video announced Q2 earnings last Monday.
• Citigroup’s Tyler Radke stated that quarterly outcomes painted many concerns.
• Zoom Video will likely keep enduring the persistent macro headwinds.

Zoom Video Communications announced Q2 earnings last Monday. Meanwhile, the firm’s management revised financial guidance for Q3 and the entire 2023 financial year.

Second-quarter outcomes missed estimates, and Tyler Radke of Citigroup stated that quarterly earnings highlight multiple concerns that influence the company’s latest downgrade.

Q2 Results and Concerns That Drove Latest Downgrade

Zoom Vide is a communication tech company based in the United States. It offers online chat and telephony services via cloud-based P2P software. Remember, the company completed its IPO (initial public offering) in 2019 following its 2011 incorporation.

Zoom Video announced Q2 financial outcomes last Monday. Total revenue gained 7.8% year-on-year to $1.1 billion, lower than anticipated, whereas no-GAAP earnings (per share) were $1.05, beating by $0.12.

JMP Securities economist Patrick Waleavens stated that the total revenue outcomes are worsening, with online sales plummeting by 9% Y/Y, worse than last quarter’s 2% drop.

Zoom Video shares declined by approximately 15% yesterday following the Q2 earnings, and Citigroup’s Tyler Radke commented that the quarterly earnings revealed concerns that influenced the company’s latest downgrade.

Meanwhile, the Q2 results saw BTIG specialist Matt VanVliet downgrading Zoom from buy to neutral. He added that Tiger Global Management withdrew his Zoom stake. Thus, the technology company may face extended macro challenges, including continued pressure within the EMEA area and in its online business.

Meanwhile, the firm’s management updated fiscal guidance for Q3 and the 2023 financial year. It forecasts Q3 total revenue at $1.095B – $1.10B vs. $1.15B consensus, whereas non-GAAP returns from operations should be around $325M – $330M.

The fiscal year’s total revenue should be at $4.38B – $4.39B VS. $4.53b consensus, and non-GAAP income of $1.44B – $1.45B. Tyler Radka stated that the updated monetary guidance is worse than his fears.

$80 Represents Current Support

The present support zone stands near $80, whereas $100 represents the initial resistance mark. A price dip beneath $80 would indicate a ‘sell’ sign and open the path to $75. However, a move past $100 will reveal $110 as the next target.

Editorial credit: Michael Vi / shutterstock.com