What To Expect From Zoom’s (ZM) Q1 Earnings

Video communications platform Zoom will be reporting earnings this Thursday after market hours. Here’s what to expect.Zoom beat analysts’ revenue expectations last quarter, reporting revenues of $1.25 billion, up 5.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ billings estimates but full-year EPS guidance missing analysts’ expectations significantly. It added 105 enterprise customers paying more than $100,000 annually to reach a total of 4,468.Is Zoom a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.This quarter, the market is expecting Zoom’s revenue to grow 4.2% year on year, improving from the 2.9% increase it recorded in the same quarter last year.The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zoom has a history of exceeding Wall Street’s expectations.Looking at Zoom’s peers in the video conferencing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. 8x8 delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 2.3%, and Five9 reported revenues up 9.2%, topping estimates by 1.8%. Five9 traded up 29.3% following the results.Read our full analysis of 8x8’s results here and Five9’s results here.There has been positive sentiment among investors in the video conferencing segment, with share prices up 7% on average over the last month. Zoom is up 7.7% during the same time and is heading into earnings with an average analyst price target of $98.30 (compared to the current share price of $97.90).WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.