Macro to weigh on Zoom results, focus on 2H outlook
Zoom Video (NASDAQ:ZM) is scheduled to announce Q2 earnings results on Monday, August 22nd, after market close.
Analyst expects mixed results. While EPS is expected to fall 31.6% Y/Y to $0.93, revenue is expected to jump 9.8% Y/Y to $1.12B.
Over the last 3 months, EPS estimates have seen 0 upward revisions and 4 downward. Revenue estimates have seen 0 upward revision and 5 downward.
Macro/inflation to weigh on Q2 earnings as corporate budgets to tighten and increased competition from Microsoft Corp.âs Teams. The video still remains the key driver, however the focus will be on Zoom Phone.

Earnings History: Zoom Video Communications (ZM) shares soared 17% in after-hour trading, after reporting its Q1 results beat estimates and raised its full-year earnings guidance.
Citi downgraded the software company recently, citing "new hurdles to sustaining growth," including increased competition from Microsoft.

Analyst View: MKM Partners analyst Catharine Trebnick initiated coverage of Zoom Video with a Buy rating and $135 price target as the stock is down 30% YTD due to multiple compression across the software market and the company's management guiding to slower Y/Y growth post-pandemic. Analyst expects growth back up to 20% - ahead of its conservative FY23 guidance range of 10.5%-11%.
The company is expected to provide Q3 guidance and update to its FY23 guidance. Analyst expects EPS estimate of $0.92, down 16.87% Y/Y and revenue estimate of $1.15B, up 9.6% Y/Y.