i_SVG Created with Sketch.

Capital Markets Elite Group is not a registered U.S. broker-dealer. It does not accept a U.S. Person as a client if that person was solicited by Capital Markets Elite Group. (The definition of “U.S. Person” is here.) Capital Markets Elite Group will rely on a certification from a potential customer that the potential customer either is not a U.S. Person or has not been solicited, directly or indirectly, by Capital Markets Elite Group and has not been induced by Capital Markets Elite Group to engage in securities transactions. In particular, they must certify that they were directed to this website by someone other than Capital Markets Elite Group. They must also certify that they understand that they will not be protected by U.S. laws, regulations and supervisory structures applicable to broker-dealers registered in the U.S. and they do not expect such protections to apply. You should give these certifications only if they are true. If you wish to proceed to the website knowing that, please click “Continue” below. Otherwise click “Leave Website”

Leave Website
  • Products
    Products

    Capital Markets Elite Group provides you with a range of online trading and investment products. Learn more about us and our tools to help build your portfolio.

  • Platforms
    Platforms

    View Capital Markets Elite Group’s suite of easy-to-use, powerful and high-tech online stock trading platforms to see which fits your trading needs best.

  • Pricing
    Pricing

    Each product and online trading platform offered by Capital Markets Elite Group has unique features and capabilities with no hidden costs.

  • Services
    Services

    Capital Markets Elite Group offers services in addition to our trading platforms to grow your portfolio and supply you with assistance where you need it most.

  • Company
    Company

    Capital Markets Elite Group is an online brokerage and independent asset management firm that's customer-focused and results-driven. Let us know how we can further support you.

Start Trading
zoom

Zoom Beats Earnings Estimate and Provides Strong Guidance 

Ticker Symbol: ZM

Zoom Video Communications, the company whose software became one of the biggest winners from the pandemic and gained “verb status”, reported earnings that beat the average Wall Street expectations last night. More crucially, the company also provided guidance that exceeded analysts estimates, indicating that Zoom may have staying power beyond the pandemic.  Shares were up 6.5% in afternoon trading, after being up as much as 22% in aftermarket trading in the previous session.

The company reported first quarter adjusted earnings per share of $1.03 trouncing the average analyst estimate of $0.86. Revenue was up 12% year-on-year to $1.07 meeting the $1.07 billion investor estimate. Free cash flow also was a beat, coming in at $501 million against the expectation of $412.7 million. For the second quarter, the company sees revenue of $1.12, ahead of the expected $1.11, while it sees EPS between 90¢ to 92¢, 8% more than the estimate of 84¢. For the full fiscal year, the company sees EPS between $3.7 and $3.77, ahead of the $3.49 expected, and revenue that met guidance of $4.54 billion at the midpoint.

Critically, the company has started shifting focus from the less profitable retail customers to business users who will increasingly represent a larger share of the company’s top line. To this end, Zoom said it had almost 200 thousand enterprise customers as of April 30th. Additionally, the number of customers that contributed more than $100 thousand in the trailing 12 months of revenue was up a whopping 46% year over year. The company also said that the number of customers using Zoom Phone reached 3 million during the quarter. Zoom is also focusing more on the enterprise crowd by launching Zoom IQ, which is a call analytics tool for sales departments.

The company’s progress on diversifying its product portfolio and expanding its horizontals should lead to higher growth in the near future. While the company grew the top-line 12% in Q1, it was still the slowest growth period in the company’s history. Furthermore, Microsoft’s competing video communications and collaboration software, Teams, has started emerging as a clear rival in the space. As offices reopen and business fliers return to on-site customer visits, the company’s product could also come under further strain.

Despite these overhangs, the company’s first quarter results rebutted the drastically negative sentiment on the company’s outlook and future viability. The company is also successfully cross-selling its Zoom Chat, Zoom Phone and Zoom IQ to enterprise customers, who need a one-stop solution for monitoring, analyzing and recording their communications with clients. The company’s valuation has also been cut by 80%, making its forward P/E of 26x relatively reasonable compared to peers.

This content is provided for general information purposes only and is not to be taken a investment advice nor as a recommendation for any security, investment strategy or investment account.