- 4Q22 Rev Guide Flat QoQ $1.05b ➡️
- 4Q33 NDRR to be modestly below 130% mark ➡️
1 | Q4 - Lowest Seasonality
“…for deferred revenue there's two things to remember, which is the seasonality trend of our renewals is that Q1 is the largest quarter for renewals order for renewals and Q4 is the lowest.”
2 | Advertising - More to Explore
“Zoom still offers good value, obviously, we got to do think about how to monetize it differently. Again, this is something new for us, and we would like to explore more in the next few quarters.”
3 | ROW growing faster than Americas
- Rev Americas $700m +30%
- Rev ROW $350m +47%
4 | Very Strong RPO Growth (even faster than revenue)
- RPO $2.5b +51% ↗️↗️
- Current RPO $1.6b +38% ↗️
- Non-Current RPO $822m +82% 🚀
If one is focused on just “slower” near-term growth, they are missing the “longer-term” aspect.
4 | Very Strong RPO Growth (cont’d)
“We expect to recognize ~67% of the total RPO as revenue over the next 12 months as compared to 72% in 3Q21 , reflecting a shift back towards longer-term plans.”
5 | Very Strong Cash Flows and Cash Position
6 | Zoom’s $ZM stock price is down from all-time-highs.
7 | Arguably Zoom’s $ZM stock price has lagged the actual business fundamentals (growing revenues, profits and cash flows) in the near-term significantly.
Would be worth watching long-term, when this gap closes back up.
➡️ Final Takeaway on Zoom $ZM:
Strong combination of growth and very strong profitability, supported by product expansion (Phone, Apps, Events) to further strengthen the platform. Drawdown from ATH does not bother me, still holding it. Valuations are extremely undemanding.
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“The third quarter was outstanding, with record revenue. Demand for NVIDIA AI is surging, driven by hyperscale and cloud scale-out, and broadening adoption by more than 25,000 companies.”
Business Metrics
- FY20 108% NRR
- Organic Rev Growth 54% vs 60%
- Cust >$100k Count >1,250 +70% ↗️
- Cust >$100k ACV +85% ↗️ (~40% of rev)
- International Rev $80m ARR (~11%) +80% ↗️
⭐️ Data Moat: Info on 150m business professionals and 100m companies.
1 | ❌📉 Adj EBIT Margin has been steadily declining, and likely to continue for now…
$ZI starting from a position of strength, digest acquisitions, continuing to invest in sales to drive growth, expect LT margins to eventually reverse back higher. For now, growth is priority.
- TPV $1.8b +217% 🚀
- TPV ratio/take-rate 3.8% -30bps QoQ ↘️
- Rev $69m +123% 🚀
- Adj EBITDA $26m +110% 🚀 margin 38% ⭐️ -211bps ↘️
- NG Net Income $20m +129% 🚀 margin 29% ⭐️ +89bps ↗️
- High Net Retention 185% ⭐️
1 | Strong Q3
“We continue to see strong growth across multiple verticals as we see local economies continue to bounce back and global merchants prioritize their efforts in emerging markets.”
2 | $DLO solving the problem of EM payments complexity