Checking In on “Pandemic Stocks”

Checking In on "Pandemic Stocks"

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Learn More Zoom Video got a big boost as offices closed and people stayed home. How’s it doing now?

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To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center . To get started investing, check out our quick-start guide to investing in stocks . A full transcript follows the video. Should you invest $1,000 in Zoom Video Communications right now?

Before you consider Zoom Video Communications, you’ll want to hear this.

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*Stock Advisor returns as of March 3, 2022

This video was recorded on March 1, 2022.

Chris Hill: Today on Motley Fool Money, a look at pandemic stocks and a surprising CEO change, that and more coming up right now. I’m Chris Hill joined by Motley Fool Senior Analyst Tim Beyers. Thanks for being here.

Tim Beyers: Thanks for having me Chris, caffeinated up and ready to go or maybe I need a little bit more caffeine, can’t speak.

Chris Hill: Get some more caffeine. [laughs] We’re going to start with Zoom Video because look, it’s March first. I know for everyone, the pandemic starts at a different time. Probably as an investor, I think of my timestamp, the start of the pandemic as March of 2020. Zoom video is as big a pandemic stock.

Tim Beyers: Hundred percent.

Chris Hill: As exists out there and we’ll get to the group in a second. But I’m curious to get your thoughts on the fiscal year they just wrapped up. It was interesting to me to see that and we’ve seen this a lot over the last six months or so. They came out with their fourth-quarter earnings report after the closing bell yesterday. The headline is about the guidance and after hours the stock was down somewhere in the neighborhood of eight percent. As of the market open this morning it’s up almost one percent as people had more time to digest it. Just in terms of the year, they just wrapped up what stands out to you because there are a lot of numbers to digest. But the one that stood out to me was the customers they have paying $100,000 or more and the growth in that category, it seems pretty impressive.

Tim Beyers: They’re up 66 percent. I mean, I think that’s pretty good; pretty good, 66 percent. Yeah, agreed Chris. I know we’re being a little bit snarky here, but let’s just hit some of the numbers overall. Year-end number of customers over $100,000, so big customers, that was up 66 percent year-over-year. Total revenue for the year came in at, it’s just about 4.1 billion. We’ll call it 4.099 Billion, but that was up 55 percent year-over-year. Overall, the income from operations up 61 percent year-over-year, these are really strong numbers. I think if you wanted to fixate, you could look at the fourth quarter because that’s a hard year-over-year comparison. For example, fourth-quarter total revenue up 21 percent. Far different, much slower growth. Non-GAAP income from operations up 16 percent in the fourth quarter.There was some fourth-quarter GAAP income from operations that was down two percent year-over-year. There are some things that you could look at and go, I don’t know, growth’s slowing here, but overall, Chris, what an outstanding year for an outstanding company. I […]

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