Zoom (ZM) has been one of the best performing stocks of 2020, but is Zoom still a buy in 2021? In this Zoom Q4 Earnings Analysis I break down what this latest round of earnings means for Zoom's future.
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Zoom has been an absolute powerhouse of a company in 2020, growing revenue over 360% year over year. They have done this through a combination of having the best video conferencing product available, executing well to scale their company in the face of increasing demand, and achieving a one-in-a-lifetime brand position by being the go-to platform for staying connected while working from home. With this incredible growth has come a similar growth in expectations, with the stock price pricing in continued growth from Zoom in the future. This has resulted in Zoom losing value as its growth rate has fallen back to pre-2020 levels. With the release of Zoom's Q4 2021 Earnings, we finally have a full overview of fiscal year 2021, the year in which Zoom took off. With the end of this fiscal year also come questions of the next year.
While Zoom's forecasts are very conservative this quarter, they were equally low last quarter, and my analysis that they were low-balling how they would actually perform turned out to be correct. Will they continue to grow next year? Will their new products be huge successes like their video platform? Is Zoom still a Buy in 2021?
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0:00 Intro
0:35 The Story Up to Now
3:25 Zoom FY 2021 Earnings
4:12 Zoom Q4 Earnings
8:10 Zoom Phone
9:55 Zoom’s Future