Zoom, Boom or Loom?

Good Tuesday every mooers! $Zoom Communications (ZM.US)$ released its Q3 2021 fiscal earnings report yesterday, which was a great performance of this fiscal year. We highlight some questions and answer you might want to know for your kind reference. Will Zoom boom or loom in the future? Come and read!!

Q:What information did Zoom's report disclose? What are the potential risks to be careful about?
A: Zoom delievered a financial report beyond previous expectations. The total revenue is 777.2 million dollar, increased 367% compared to last year. The net profit is 198.4 million dollar, which is almost 90 times as the figure of the same period in last year. Number of customers with more than 10 staffs is around 433 thousand, showing a 485% increase compare to last year. There are 1289 customers contributed more than 100K dollar turnover in the past month. These data indicate that among the vast expanding of Zoom's business, the core user group of Zoom have been more and more stable, which is a good news for the company's long-term development.

In terms of risk, the user growth slowed compared to previous quarter. People worried that Zoom's expansion may reach the boundary. Concerns about the sequent development of pandemic also shake people's confidence on Zoom. When workers return to office, can Zoom still gain its customers？

Q: What does the churn data tell us when Zoom is expanding?
A：CFO of Zoom claim decline of churn rate among all levels of Zoom customers. This shows that Zoom have already managed to gain a relatively stabled group of customers as while as maintaining rapid expansion. Currently, more churn happened to customers with less than 10 staffs. Zoom also predict that as the situaiton of pandemic shift, this group of customer may further churn. But they have already take procautions to this problem.

Q: Is Zoom Phone important to Zoom's future development?
A: According to Zoom CFO, Zoom Phone will be the main driven force for Zoom next year. Although no specific data have been disclosed, Zoom stressed that Zoom Phone show postive development in last quarter. The analysts believe this service is key when Zoom try to expand business among major customers. Therefore, Zoom Phone is vital for Zoom's future development.

Q: Can Zoom maintain its current revenue when pandemic end?
A: This is the problem most investors concerned. There are opinions state that as the breakthrough of vaccine comes close, pandemic may be controlled in next year. There is no doubt that Zoom's booming  is largely related to the impact by pandemic. If the pandemic get control, would that be the end of Zoom's expansion？Zoom claims they have been prepared for this possible situation. They also believe that major customers will still choose Zoom service even when the pandemic is over. They also state that the value provided by Zoom is beyond the influence of pandemic.

Apart from this, we noticed one of the most interesting stocks - Snowflake $Snowflake (SNOW.US)$ will announce its first earnings report the day after tomorrow.

Snowflake stock price initially opened at $120, but it rocketed up to $240 at its first in market, which is a huge leap. Our moo live team want to know if mooers shed attention on this stock. If you are interested, we will sync the live to moo community for you to get the first-hand info! Come and vote! We are here to listen to your answers.