# Zoom Communications, Inc. Class A Common Stock (ZM) — Stock CV

Zoom Communications, Inc. is a $28.5B technology company. Revenue grew 5.0% over the last year, and it keeps 65¢ of every dollar of sales as profit. It trades at 8.1× earnings — near the lowest of its own history.

> Zoom Communications provides a video-first communications platform that connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables video experiences and connects users across various devices and locations in a single meeting.

## Identity

- **Ticker**: ZM
- **Sector**: Technology
- **Industry**: Services-Computer Programming, Data Processing, Etc.
- **Headquarters**: SAN JOSE, CA
- **Employees**: 7 438
- **Website**: https://www.zoom.com
- **Market cap**: $28.5B
- **Last price**: $97.77
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $4.99B
- **Net income**: $3.26B
- **Free cash flow**: $1.93B
- **P/E**: 8.1
- **Revenue growth (YoY)**: 5.0%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 69 |
| Growth | 43 |
| Profitability | 95 |
| Health | 43 |
| Quality | 62 |
| Moat | 87 |

## Qualifications (beginner checklist) — 9 of 10 passed

- [x] Revenue growing — +5.0% YoY
- [x] Profitable — $3.26B TTM
- [x] Profit growing — +162.7% YoY
- [x] Generates cash — $1.93B TTM
- [x] Debt under control — current ratio 3.83
- [x] Established company — $28.5B market cap
- [x] Not printing shares — +3.1% shares over ~5y
- [x] Proven track record — 7/7 profitable years
- [ ] Financially stable — health score 43/100
- [x] Valuation not extreme — P/E 8.1

## Experience (career milestones)

- **FY2026** — Best year on record: $1.90B net income
- **2021** — Zoom acquired Kites (Karlsruhe Information Technology Solutions), an artificial intelligence-based…
- **FY2021** — Revenue crossed $1B: $2.65B for the year
- **2020** — Zoom announced its first hardware as a service products in July 2020, bundling its videoconferencing software with…
- **2020** — It became available in August 2020
- **FY2020** — Profitable every year on record: 7 consecutive profitable years in our data
- **FY2020** — Positive free cash flow every year since: 7-year streak
- **2019** — The company first became profitable in 2019
- **Apr 18, 2019** — The company became a public company via an initial public offering
- **2017** — Zoom launched a scalable telehealth product allowing doctors to host remote consultations with patients
- **2017** — From September 25–27, 2017, Zoom hosted Zoomtopia 2017, its first annual user conference
- **2013** — He launched its software in 2013
- **2012** — The company changed its name to Zoom, influenced by Thacher Hurd's children's book Zoom City
- **2012** — Zoom launched a beta version that could host conferences with up to 15 video participants

## Strengths

- High gross margin (77.3%)
- Strongly profitable — 65.2% net margin
- Strong cash conversion — FCF is 38.6% of revenue
- Interest covered 7.6× by operating earnings
- High returns on invested capital (ROIC 95.4%)

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $4.10B | $1.38B | $1.47B |
| FY2023 | $4.39B | $104M | $1.19B |
| FY2024 | $4.53B | $637M | $1.47B |
| FY2025 | $4.67B | $1.01B | $1.81B |
| FY2026 | $4.87B | $1.90B | $1.92B |

---

Source: https://stockcv.com/ZM — derived from company filings; may be delayed or incomplete. Information, not investment advice.