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Expectations for Zoom’s fiscal Q2 2022 earnings report

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Yahoo Finance’s Dan Howley breaks down what to expect for Zoom’s fiscal Q2 2022 earnings.

Video Transcript

ALEXIS CHRISTOFOROUS: Zoom video is set to announce its second quarter earnings results after today's closing bell, and the report might just give investors their first glimpse at what the quintessential work from home stock could look like in a post-pandemic world. Our Tech Editor Dan Howley here now with a preview. Hi there, Dan.

DAN HOWLEY: How you doing, Alexis? That's right, we're expecting Zoom to report numbers with revenue of $990 million. That's compared to $663 million in its prior Q2. Just setting the ground here, we're in Q2 2022 presumed, so that would be Q2 2021 when we had that $663 million. And we're also expecting $1.16 on adjusted earnings per share. That is up from $0.92 in Q2 fiscal 2021.

And the big question here is going to be, what does Zoom have to offer investors as far as growth going forward? We saw absolutely skyrocketing growth in the prior year. We're looking at a 458% increase in the number of customers with 10 or more employees, and then a 112% increase for customers that pay at least $100,000 or more in the trailing 12 months-- so obviously massive numbers there.

But we're going to see that kind of fall off a little bit in this. Analysts are expecting just a 37% increase in customers with more than 10 employees, but also a 123% increase in the companies that paid $100,000 or more in the trailing 12 months. And the big discussion is, what is the growth going to look like going forward?

Analysts are predicting, obviously, tough comparisons-- so not nearly as high as we originally saw as people were getting into the video kind of communication elements when we had the pandemic really taking off last year. So this is going to be kind of a rough one for Zoom going forward as far as the growth comparisons go. Now, moving forward, we could see the production again in growth. But no one's saying this company is going to stop growing entirely, just that it's not going to be as astronomical as previously.

ALEXIS CHRISTOFOROUS: And we know that innovation is the name of the game in every industry. So how is Zoom looking to expand beyond those video capabilities as it continues to look out to a post-pandemic world?

DAN HOWLEY: Yes, they actually have a few things on tap. And really what they're doing is trying to expand what video can do for consumers and what those consumers can do for Zoom in the long run. What they have is their different apps integration now so that you can use Zoom and integrate it with things like Dropbox.

You can have WW-- that's formerly Weight Watchers, it's Wellness that Works by WW. There's also Survey Monkey enterprise and dot collector. And these are all things that can be integrated directly into Zoom so you can use them while you're having video conversations.

The other thing that they have-- they have picked up 59. That's a cloud customer support service. Basically, they allow you to get in touch with a customer. Now, Zoom has that. So they're going to be able to provide video capabilities for customer support.

So they're doing a lot there. They also have events by Zoom. So if you want to join a yoga class on the other side of the world, you can do that if it fits your time schedule-- maybe not, maybe it will. But they have different offerings like that. So, really, they're just trying to expand this beyond just jumping into a work meeting or saying, hello, to friends that you may not have been able to see or may not see as the Delta variant continues to surge across the country.

ALEXIS CHRISTOFOROUS: All right, our Tech Editor Dan Howley, you're going to be busy after the bell today, I know, covering those Zoom earnings for us. Thanks for the preview.