Zoom Video Stock Is Sliding Tuesday: What's Going On?

Zoom Video Communications Inc ZM shares are trading lower Tuesday following the company’s first-quarter financial results. Multiple analysts also lowered price targets on the stock following the print.

• Q1 Revenue: $1.14 billion, versus estimates of $1.13 billion

• Q1 EPS: $1.35, versus estimates of $1.20

Net cash provided by operating activities was $588.2 million in the first quarter, up 40.6% year-over-year. Free cash flow came in at $569.7 million, up 43.6% year-over-year.

Zoom ended the quarter with approximately 191,000 enterprise customers. 3,883 of those customers were contributing more than $100,000 in trailing 12 months revenue at quarter’s end, up approximately 8.5% year-over-year.

"In Q1, we continued to integrate AI across our platform including Zoom Contact Center and Zoom Workplace, our AI-powered collaboration platform that provides customers the ability to reimagine teamwork by streamlining communications, increasing employee engagement, and improving productivity within their organizations," said Eric Yuan, founder and CEO of Zoom.

Outlook: Zoom sees fiscal second-quarter revenue in the range of $1.145 billion to $1.15 billion versus estimates of $1.15 billion. The company said it expects second-quarter adjusted earnings to be between $1.20 and $1.21 per share versus estimates of $1.23 per share. 

Zoom expects full-year revenue of $4.61 billion to $4.62 billion versus estimates of $4.61 billion. Full-year earnings are expected to be between $4.99 and $5.02 per share versus estimates of $4.91 per share.

Analyst Changes:

• Bernstein analyst Peter Weed maintained Zoom with a Market Perform and lowered the price target from $82 to $78.

• Baird analyst William Power maintained Zoom with an Outperform and lowered the price target from $90 to $84.

• Evercore ISI Group analyst Peter Levine maintained Zoom with an In-Line and lowered the price target from $72 to $70.

• Rosenblatt analyst Catharine Trebnick maintained Zoom with a Buy and raised the price target from $75 to $78.

• Stifel analyst Parker Lane maintained Zoom with a Hold and lowered the price target from $70 to $65.

Related Link: These Analysts Slash Their Forecasts On Zoom Video Following Q1 Results

ZM Price Action: Zoom shares were down 2.01% at $62.80 at the time of writing, according to Benzinga Pro.

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