Zoom Video Communications Inc
NASDAQ:ZM

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Zoom Video Communications Inc
NASDAQ:ZM
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Price: 77.65 USD -0.17%
Market Cap: 23.8B USD

Operating Margin
Zoom Video Communications Inc

17.4%
Current
14%
Average
3.3%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
17.4%
=
Operating Profit
813.3m
/
Revenue
4.7B

Operating Margin Across Competitors

Country Company Market Cap Operating
Margin
US
Zoom Video Communications Inc
NASDAQ:ZM
23.8B USD
17%
US
Ezenia! Inc
OTC:EZEN
567B USD
-132%
DE
SAP SE
XETRA:SAP
288.2B EUR
24%
US
Salesforce Inc
NYSE:CRM
268.9B USD
20%
US
Palantir Technologies Inc
NYSE:PLTR
210.2B USD
11%
US
Adobe Inc
NASDAQ:ADBE
175.1B USD
36%
US
Intuit Inc
NASDAQ:INTU
172B USD
24%
US
NCR Corp
LSE:0K45
129.4B USD
1%
US
Applovin Corp
NASDAQ:APP
111.4B USD
40%
US
Microstrategy Inc
NASDAQ:MSTR
80.9B USD
-14%
US
Cadence Design Systems Inc
NASDAQ:CDNS
72.1B USD
30%

Zoom Video Communications Inc
Glance View

Economic Moat
None
Market Cap
23.7B USD
Industry
Technology

Zoom Video Communications Inc., a brainchild of founder Eric Yuan, emerged as a frontrunner in the world of digital communication services, catalyzing a transformation in how individuals and businesses connect. Inspired by dissatisfaction with existing video conferencing platforms during his previous stints, Yuan set out to create a more user-friendly experience. In 2011, Zoom was born with a mission to make video communications frictionless. Its unique selling proposition hinged on reliable, high-quality audio and video connectivity that was simple to use—a marked departure from its predecessors, which were often criticized for being complex and unreliable. The company tapped into the latent need for a seamless digital interaction platform spanning education, healthcare, business, and beyond. Zoom generates revenue primarily through a freemium business model, enticing users with a complimentary basic version of its service while offering additional features bundled into various paid plans. These include Zoom Meetings, Webinars, Rooms, and Chat, which cater to diverse user needs from one-on-one catch-ups to large-scale corporate conferences. The subscription fees from these plans constitute the core of its business model. Additionally, Zoom monetizes through add-ons and its developer platform Zoom Apps, allowing customers to enhance or customize their video communication experiences, thereby embedding itself deeper into corporate ecosystems. Capitalizing on the sudden surge in remote work and virtual learning, especially during the global pandemic, Zoom rode a wave of unprecedented growth, proving its resilience and adaptability in dynamic market conditions.

ZM Intrinsic Value
97.28 USD
Undervaluation 20%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
17.4%
=
Operating Profit
813.3m
/
Revenue
4.7B
What is the Operating Margin of Zoom Video Communications Inc?

Based on Zoom Video Communications Inc's most recent financial statements, the company has Operating Margin of 17.4%.

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