We provide the best value to our customers by continuously refining our
Zoom technical analysis – none:
The repetitive nature of price movements is often attributed to market psychology, which tends to be very predictable based on emotions like fear or excitement. The core assumption of technical analysis, on the other hand, is that all known fundamentals are factored into price; thus, there is no need to pay close attention to them.
Technical analysts do not attempt to measure a security’s intrinsic value, but instead, use stock charts to identify patterns and trends that might suggest what the security will do in the future. There are a variety of ways to learn technical analysis. The first step is to learn the basics of investing, stocks, markets, and financials. This can all be done through books, online courses, online material, and classes. Once the basics are understood, from there you can use the same types of materials but those that focus specifically on technical analysis.
Investopedia’s course on technical analysis is one specific option. John J. Penguin, CMT Association. Technical Analysis. Technical Analysis Basic Education. When you visit this site, it may store or retrieve information on your browser, mostly in the form of cookies. Cookies collect information about your preferences and your device and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests.
You can find out more and change our default settings with Cookie Settings. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. Table of Contents. What Is Technical Analysis? Understanding Technical Analysis. Using Technical Analysis. Underlying Assumptions. Technical vs. Fundamental Analysis. Limitations of Technical Analysis. Contact Barchart.
Site Map. Want to use this as your default charts setting? Save this setup as a Chart Templates. Switch the Market flag for targeted data from your country of choice. Open the menu and switch the Market flag for targeted data from your country of choice.
Want Streaming Chart Updates? Switch your Site Preferences to use Interactive Charts. Need More Chart Options? Right-click on the chart to open the Interactive Chart menu. Free Barchart Webinar. Reserve Your Spot. In a normal meeting, people will variously be looking at the speaker, taking notes or looking elsewhere.
But on Zoom calls, everyone is looking at everyone, all the time. The amount of eye contact is dramatically increased. Solution: Until the platforms change their interface, Bailenson recommends taking Zoom out of the full-screen option and reducing the size of the Zoom window relative to the monitor to minimize face size, and to use an external keyboard to allow an increase in the personal space bubble between oneself and the grid. Most video platforms show a square of what you look like on camera during a chat.
Bailenson cited studies showing that when you see a reflection of yourself, you are more critical of yourself. Many of us are now seeing ourselves on video chats for many hours every day.
Solution: Bailenson recommends that platforms change the default practice of beaming the video to both self and others, when it only needs to be sent to others. In-person and audio phone conversations allow humans to walk around and move. USD Overlap Analysis View. Forecast Models View. Price Shifting View.
Volatility Indicators View. Value Movement View. Cycle Indicators. Math Operators. Math Transform. Momentum Indicators. Overlap Studies. Pattern Recognition. Price Transform. Statistic Functions. Volume Indicators. Risk Adjusted Performance. Market Risk Adjusted Performance. Mean Deviation. Coefficient Of Variation.
Standard Deviation. Information Ratio. Jensen Alpha. Total Risk Alpha. Treynor Ratio. Maximum Drawdown. Value At Risk.
Zoom Video Communications press release (NASDAQ:ZM): Q4 Non-GAAP EPS of $ beats by $ Revenue of $B (+% Y/Y) beats by $30M. The objective of this analysis is to assess whether the hype about Zoom is worth paying attention to. There was never a question about.
To not have this security feature is one thing, but falsely claiming to have such features and misleading clients is another thing. A Zoom spokesperson admitted to this and said , “currently, it’s not possible to enable end-to-end encryption for Zoom video meetings.
The company, on April 2, confirmed that it will release an updated version of the Zoom application that will fix most of these privacy issues. However, Arvind Narayanan, an associate computer science professor at Princeton University, is still not convinced. He told The Guardian:. The number of security issues with Zoom in the past makes it as bad as malicious software. Let’s make this simple. Zoom is malware. In addition to all this, Zoom has been accused of selling third-party user data to tech-giants including Facebook FB , without the consent of users.
There’s only one way Zoom is going to come out of all these accusations; by investing to improve the security of all its platforms and mobile applications. This, however, will dent earnings in the short to medium term. What I’m more worried about is a dent in investor sentiment that might take months to fix. Many more instances of privacy breaches might surface in the coming months, keeping shares from taking off. The network effect occurs when the value of a company’s service increases for both new and existing users as more people use the service.
Think about Facebook for example, which is one company that benefits from the network effect. There are billions of users on Facebook, which makes it pointless for a new user to sign-up on another platform when his kith and kin would likely to use Facebook than any other social media platform out there. This effect, on the other hand, enables the company to earn billions of dollars in advertisement revenue.
Zoom is the leader of the video conferencing industry. According to the fourth-quarter earnings reports of the company, Zoom had This includes both free and paying subscribers and was helped by the surge in its popularity since the beginning of this year. The growth in the number of Zoom users has surpassed that of its competitors by a healthy margin.
Source: Investor presentation. It seems like Zoom has what it takes to benefit from the network effect. If many companies are using Zoom for video conferencing purposes, a new user might want to join the same platform in a bid to make cross-company meetings faster and easier.
However, there’s a long way to go for Zoom to financially benefit from such an effect. Switching between either one of these providers is not a difficult task and would likely cost nothing. Because the industry is still young, any one of these companies could aggressively gain market share, especially if Zoom fails to keep up with the current regulatory challenges. In the absence of meaningful switching costs, tech giants such as Microsoft could easily improve their services offering and the quality of the platform to quickly become the industry leader.
As investors, we need to discount Zoom’s target price by an amount that is sufficient to reflect this risk. This might feel like the best time to be investing in a company that facilitates video conferencing while the world is in lockdown. Better yet, on the company that is leading the charge.
However, I beg to differ. I have used Zoom twice, and I have to admit that the ease of using its platform impressed me a lot. Microsoft Teams failed to leave the same impression on me in the one time I used it. I’m sure many of the new users of Zoom are feeling the same. But there’s reason to believe that Zoom is headed toward rough seas. The company has to navigate the regulatory pressure to start with. Second, Zoom needs to improve its operating capabilities to satisfy both new and existing clients.
To do this, the company will likely hire new support staff and incur costs to optimize its servers to function without any lags. However, even the company management is not sure how many of these new users can be converted into paying subscribers. In terms of our results in Slide 4, Q4, we did not see any impact directly related to coronavirus and as a reminder we have definitely seen an uptick in usage.
But a lot of that is on the free side. So it’s very early to tell whether or not that’s going to convert long-term into paying customers.
As we mentioned, we are seeing impact and if continue to build capacity to ensure that we can support this increased usage. So we are seeing impact on our gross margins, which is why we’re guiding you towards the lower end of our range for next year. While investors and analysts are betting on Zoom to report higher earnings in the coming quarters, resulting from the uptick in usage of its platforms, insiders are betting on a contraction of profit margins due to the significant investments the company has to undertake to facilitate the sudden increase in users.
Third, competitors might aggressively gain market share while Zoom works on getting the house in order. Based on all these developments, I have decided to stay on the sidelines to see how Zoom would respond to these challenges and to assess the true financial impact of COVID There’s a bubble in the making as market participants are expecting a surge in earnings during the latter half of this year, whereas the company might report disappointing growth figures.
For now, I refrain from running an extensive model to value Zoom shares because the usage statistics in the next couple of months can and will change the big picture dramatically. There’s a significant level of uncertainty involved. However, I plan on updating readers in a couple of months once we have more data to work with.
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Dilantha De Silva Marketplace. Source It’s not only biotech stocks that are having a great run amidst this chaos, courtesy of the new coronavirus.
The hype is backed by numbers There’s a hype about Zoom’s prospects and this is not news anymore. According to research firm Apptopia, daily U.
According to data from SimilarWeb, the monthly visits to the official Zoom website has grown from March numbers would have been even better, but SimilarWeb is yet to publish those figures. Source: SimilarWeb Zoom is also the most downloaded mobile application in the U. Source: Statista There’s more to the growth story of Zoom. A deep dive into the numbers The objective of this analysis is to assess whether the hype about Zoom is worth paying attention to.
Source: Zoom With the basic package, 40 minutes of group meetings 3 or more participants are given to a user. Daniel Newman, a founding partner of Futurum Research who is a paying Zoom subscriber, told the Wall Street Journal: As a paying user, this has been frustrating.
Regulators are on Zoom’s tail after a few reported incidents Things were going well for Zoom until a few security breaches surfaced. The below is an excerpt from an FBI announcement dated March 31 that confirmed an investigation into this matter: As large numbers of people turn to video-teleconferencing VTC platforms to stay connected in the wake of the COVID crisis, reports of VTC hijacking also called “Zoom-bombing” are emerging nationwide.
Within the FBI Boston Division’s area of responsibility AOR , which includes Maine, Massachusetts, New Hampshire, and Rhode Island, two schools in Massachusetts reported the following incidents: In late March , a Massachusetts-based high school reported that while a teacher was conducting an online class using the teleconferencing software Zoom, an unidentified individual s dialed into the classroom.
This individual yelled a profanity and then shouted the teacher’s home address in the middle of instruction. A second Massachusetts-based school reported a Zoom meeting being accessed by an unidentified individual. In this incident, the individual was visible on the video camera and displayed swastika tattoos. Proceeds to Selling Stockholders. Per Share.
We have granted the underwriters the right to purchase up to an additional 3,, shares of Class A common stock to cover overallotments, if any. The Securities and Exchange Commission and state regulators have not approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The underwriters expect to deliver the shares of Class A common stock to purchasers on April 23, April 17, Table of Contents. Thank you to our Customers. Thank you to our employees. Neither we, the selling stockholders, nor any of the underwriters have authorized anyone to provide you with any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses we have prepared.
Neither we, the selling stockholders, nor any of the underwriters take any responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. We are offering to sell, and seeking offers to buy, shares of our Class A common stock only in jurisdictions where offers and sales are permitted. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of our Class A common stock.
Our business, financial condition, results of operations and future growth prospects may have changed since that date. Through and including May 12, the 25th day after the date of this prospectus , all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus.
For investors outside the United States: Neither we, the selling stockholders, nor any of the underwriters have done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States.
Persons outside of the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, the offering of the shares of our Class A common stock and the distribution of this prospectus outside of the United States. This summary highlights selected information contained elsewhere in this prospectus.
This summary does not contain all of the information you should consider before investing in our Class A common stock. Our fiscal year ends on January Our mission is to make video communications frictionless. We provide a video-first communications platform that delivers happiness and fundamentally changes how people interact. We connect people through frictionless video, voice, chat and content sharing and enable face-to-face video experiences for thousands of people in a single meeting across disparate devices and locations.
Our cloud-native platform delivers reliable, high-quality video that is easy to use, manage and deploy, provides an attractive return on investment, is scalable and easily integrates with physical spaces and applications. We believe that rich and reliable communications lead to interactions that build greater empathy and trust.
We believe that our platform transforms how organizations communicate and work to create opportunities that were not possible before. We are witnessing the rapid adoption of video communications inside traditional organizations, enabling far greater effectiveness and intimacy in human-to-human interactions over a distance. In addition, we are enabling new use cases for how people are carrying out their work.
For example, a technology customer with approximately 1, employees has been able to grow and maintain its culture even with an all-remote employee base by running all of its meetings on Zoom. A hospital, using Zoom, has been able to reduce the number of and time in surgeries by connecting specialists live into the operating room. A university uses Zoom to encourage participation and inclusion for students in its night program who have family and work constraints that would otherwise prevent them from participating in class.
We believe that our customers are delighted when they use our platform. Since our founding in , our platform has been used to conduct tens of billions of meeting minutes.
We believe that our success results from a culture that is focused on customer and employee happiness, a video-first cloud architecture, recognized market leadership, viral demand, an efficient go-to-market strategy and robust customer support. Our architecture is video-first, cloud-native and optimized to dynamically process and deliver reliable, high-quality video across devices.
Our approach to video has been substantially different from that taken by others who have attempted to add video to an aging, pre-existing conference call or chat tool. We developed a proprietary multimedia router optimized for the cloud that separates content processing from the transporting and mixing of streams. Our globally distributed cloud architecture delivers a differentiated user experience. The cornerstone of our platform is Zoom Meetings, around which we provide a full suite of products and features designed to give users a frictionless communications experience.
Users are comprised of both hosts who organize video meetings and the individual attendees who participate in those video meetings.
Many customers also choose to implement Zoom Rooms, our software-based conference room system, which enables users to. Table of Contents easily experience Zoom Meetings in their physical meeting spaces.
Our robust integrations and partner ecosystem enable organizations to connect Zoom seamlessly with third-party applications that their employees already use, reducing friction and increasing employee happiness and productivity. The happiness we bring is recognized by customers and industry analysts alike. We have a unique model that combines viral enthusiasm for our platform with a multipronged go-to-market strategy for optimal efficiency. This enthusiasm continues as meeting participants become paid hosts and as businesses of all sizes become our customers.
Our sales efforts funnel this viral demand into routes-to-market that are optimized for each customer opportunity, which can include our direct sales force, online channel, resellers and strategic partners. Our sales model allows us to efficiently turn a single non-paying user into a full enterprise deployment.
We believe that we have built a scalable and sustainable business model. We have thousands of customers of all sizes across industry verticals and geographies. We are experiencing rapid revenue growth and are generating positive cash flow from operations.
Much of the primary capital that we have raised in recent years remains on our balance sheet, demonstrating the cash flow efficiency of our business. Industry Trends in Our Favor. Communication is at the Center of Organizational Performance. Communication is fundamental for organizations. High-quality communication increases happiness throughout teams and, when coupled with strong execution, can improve business performance.
The evolving nature of the modern workforce has made communication even more important than it has been in the past. The way people work is changing. Organizations must evolve their approach to communication and collaboration in response to the following trends:. Employees are increasingly distributed. Historically, teams were physically located together, even in the largest organizations, to drive productivity.
Mobile and cloud technologies and ubiquitous network connectivity have enabled modern organizations to be increasingly distributed. People derive more personal satisfaction and are more productive when they engage at a deeper level across internal and external business relationships. With increasingly distributed workforces, maintaining this level of engagement is difficult. Video is a rich form of interaction as it allows the communication of facial expressions, emotions, body language and the surrounding environment.
However, the lack of reliable business solutions has limited the adoption of video in the workplace. Workforce demographics are changing. Shifting demographics alongside increasingly distributed workforces increase the need for effective ways to communicate beyond in-person meetings. This population values agility and flexibility in their work environment, and millennials expect technology to meet their needs and work seamlessly.
Employees are influencing IT decisions. Employees are increasingly the primary force for IT modernization at work as they bring the latest technologies from their personal lives to their jobs. Employees often expect to seamlessly communicate on any device and across mediums and, as a result, are increasingly influencing IT decisions.
Legacy approaches to workplace communication have failed to address the evolving nature of work. Legacy communication tools have been ineffective due to substandard technology, expensive deployments, complicated interfaces and aging, proprietary architectures. This dynamic has resulted in organizations deploying disparate and siloed technologies to address each of the various ways in which people communicate, including video, voice, email, chat and content sharing.
These disparate technologies are difficult for employees to adopt and navigate and cumbersome and expensive for IT to support and manage. To effectively enable modern communication, a comprehensive platform must have the following qualities:.
Reliable, high-quality communications. Organizations have a significant need for a platform that reliably delivers high-quality video and voice, even with varying levels of network performance. Easy to use. In addition, users want solutions that have feature parity across devices and seamlessly integrate with their calendars, contacts and overall workflows.
Easy to deploy and manage. Organizations want a single platform that is easy to deploy, leverages existing network infrastructure and conference room hardware and is simple to manage at scale through an intuitive administrative console and reporting system.
Attractive return on investment. Organizations want a single platform that not only reduces the costs of proprietary infrastructure and conference room investments but also provides other opportunities for further cost savings, such as reducing unnecessary and expensive business travel. Organizations need a communications platform that can be optimized for their footprint and scales as they grow. Organizations need a platform that integrates with their physical workspaces and existing business applications.
Flexible terms. Organizations also want to purchase technology under flexible terms that are right-sized for their business needs. Our Platform.
We provide a video-first communications platform that delivers happiness and fundamentally changes how people interact by connecting them through frictionless video, voice, chat and content sharing. Our cloud-native. Table of Contents platform enables face-to-face video experiences and connects thousands of users across disparate devices and locations in a single meeting. We strive to make Zoom meetings better than in-person meetings.
Key benefits of our platform include:. Reliable, high-quality communications that enable productivity, connectedness and trust. Our platform delivers a high-quality, reliable communications experience across devices even with varying bandwidths and network performance. We provide a consolidated, intuitive interface for video, voice, chat and content sharing that can be easily navigated even by first time users.
We enable calendar integration, easy synchronization with conference room equipment and feature parity across devices. Our cloud-native platform is easy to deploy and manage by both IT administrators and business users, even when integrating with existing infrastructure.
Our platform removes the need for the integration of disparate communications tools, product-specific knowledge and high-touch user support and troubleshooting. Our platform drives higher employee engagement and improved collaboration, resulting in increased organizational productivity. Switching to our platform also reduces the costs associated with expensive on-premises infrastructure and continual maintenance. Our cloud-native platform was purpose-built to scale with organizations as they grow in size and complexity.
Our platform delivers the highest quality experience for organizations of all sizes and for meetings, whether with two or thousands of users. Our platform integrates with cloud software applications provided by companies such as Atlassian, Dropbox, Google, LinkedIn, Microsoft, salesforce.
We also have an ecosystem of hardware partners through which we deploy our Zoom Rooms and Conference Room Connector offerings. Customers can subscribe to our communications platform based on the number of hosts that they require on a month-to-month basis or purchase one- to multi-year subscriptions.
Our Competitive Strengths. We believe that we have a number of competitive advantages that will enable us to maintain and extend our leadership in communications. Our competitive strengths include:. Video-first cloud architecture. We built our platform from the ground up to be cloud-native and video-first, unlike other approaches that have attempted to add video to an aging, pre-existing conference call or chat tool.
Our unique architecture was built by our talented team, led by a founding group of engineers who have extensive expertise in real-time communications technology. A recognized market leader. We have been recognized by industry analysts as a market leader. Viral demand driven by individual users. Our rapid adoption is driven by a virtuous cycle of positive user experiences.
Individuals typically begin using our platform when a colleague or associate invites them to a Zoom meeting.
When attendees experience our platform and realize the benefits, they often become paying customers to unlock additional functionality. Growing base of happy customers. We believe that making and keeping users happy is critical to growing our business. We believe that our customer NPS, which averaged over 70 in , demonstrates that our high-quality, easy-to-use platform is making customers happy.
We have a multipronged go-to-market strategy that integrates the viral enthusiasm for our platform with optimal routes-to-market that match the size of the customer opportunity. Our direct sales force and strategic partners sell to customers of all sizes, and we leverage our online sales channel for smaller customers. Robust customer support and success function. Our Culture of Happiness. Our culture of delivering happiness drives our mission, vision and values and is fundamental to everything we do at Zoom:.
Our vision is to empower people to accomplish more through video communications. We care for our community, our customers, our company, our teammates and ourselves. This culture supports our hiring and serves as a competitive advantage in attracting and retaining top talent. Our Market Opportunity. Video has increasingly become the way that individuals want to communicate in the workplace and their daily lives. We believe we address a broader opportunity than is currently captured in third-party market research because once our customers begin to experience the benefits of our video-first communications platform, they tend to greatly expand their use of video throughout their organizations.
As a result, we expect that use of our platform will significantly increase the penetration of video communications across a broad range of customer types and use cases.
Our Growth Strategy. We focus on the following elements of our strategy to drive our growth:. Table of Contents Summary Risk Factors. These risks include, among others:. Our business depends on our ability to attract new customers and hosts, retain and upsell additional products to existing customers and upgrade free hosts to our paid offerings.
Any decline in new customers and hosts, renewals or upgrades would harm our business;. We have a limited operating history, which makes it difficult to evaluate our prospects and future results of operations;.
We operate in competitive markets, and we must continue to compete effectively;. We may not be able to sustain our revenue growth rate in the future;. Interruptions, delays or outages in service from our co-located data centers and a variety of other factors would impair the delivery of our services, require us to issue credits or pay penalties and harm our business;.
Failures in internet infrastructure or interference with broadband access could cause current or potential users to believe that our systems are unreliable, possibly leading our customers and hosts to switch to our competitors or to cancel their subscriptions to our platform;. As we increase sales to large organizations, our sales cycles could lengthen, and we could experience greater deployment challenges;. We generate revenue from sales of subscriptions to our platform, and any decline in demand for our platform or for communications and collaboration technologies in general would harm our business;.
The experience of our users depends upon the interoperability of our platform across devices, operating systems and third-party applications that we do not control, and if we are not able to maintain and expand our relationships with third parties to integrate our platform with their solutions, our business may be harmed;.
We may not be able to respond to rapid technological changes, extend our platform or develop new features; and. The dual class structure of our common stock as contained in our amended and restated certificate of incorporation has the effect of concentrating voting control with those stockholders who held our stock prior to this offering, including our executive officers, employees and directors and their affiliates, limiting your ability to influence corporate matters.
Corporate Information. We were incorporated under the laws of the state of Delaware in April under the name Saasbee, Inc. Our telephone number is Information contained on, or that can be accessed through, our website is not incorporated by reference into this prospectus, and you should not consider information on our website to be part of this prospectus. Other trade names, trademarks and service marks used in this prospectus are the property of their respective owners.
An emerging growth company may take advantage of reduced reporting requirements that are otherwise applicable to public companies.
These provisions include, but are not limited to:. We may take advantage of these provisions until the last day of our fiscal year following the fifth anniversary of the date of the first sale of our Class A common stock in this offering.
We have elected to take advantage of certain of the reduced disclosure obligations in the registration statement of which this prospectus is a part and may elect to take advantage of other reduced reporting requirements in future filings. As a result, the information that we provide to our stockholders may be different than you might receive from other public reporting companies in which you hold equity interests. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards would otherwise apply to private companies.
We have irrevocably elected not to avail ourselves of this exemption, and, therefore, we will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. Class A common stock offered by us. Class A common stock offered by the selling stockholders. Class A common stock sold by us in the concurrent private placement. Immediately subsequent to the closing of this offering, Salesforce Ventures LLC will purchase from us in a private placement 2,, shares of our Class A common stock.
We will receive the full proceeds and will not pay any underwriting discounts or commissions with respect to the shares that are sold in the private placement. The sale of the shares in the private placement is contingent upon the completion of this offering. The sale of these shares to Salesforce Ventures LLC will not be registered in this offering and will be subject to a market standoff agreement with us for a period of up to days after the date of this prospectus and a lock-up agreement with the underwriters for a period of up to days after the date of this prospectus.
We refer to the private placement of these shares of Class A common stock as the concurrent private placement. Class A common stock to be outstanding after this offering and the concurrent private placement. Class B common stock to be outstanding after this offering and the concurrent private placement. Total Class A and Class B common stock to be outstanding after this offering and the concurrent private placement. Over-allotment option of Class A common stock offered by us.
Voting rights. The holders of our outstanding Class B common stock will hold These holders will have the ability to control the outcome of matters submitted to our shareholders for approval, including the election of our directors and the approval of any change of control transaction.
Use of proceeds. We currently intend to use the net proceeds we receive from this offering and the concurrent private placement for general corporate purposes, including working capital, operating expenses and capital expenditures. We may also use a portion of the net proceeds for acquisitions or strategic investments in complementary businesses, products, services or technologies, although we do not currently have any plans or commitments for any such acquisitions or investments.
We will not receive any proceeds from the sale of shares of Class A common stock by the selling stockholders. Proposed Nasdaq trading symbol.
The number of shares of our common stock that will be outstanding after this offering and the concurrent private placement is based on , shares of our Class A common stock including the conversion of convertible promissory notes and ,, shares of our Class B common stock including the conversion of preferred stock outstanding as of January 31, and excludes:. Upon the execution and delivery of the underwriting agreement related to this offering, any remaining shares available for issuance under our Fourth Amended and Restated Global Share Plan Plan will become reserved for future issuance as Class A common stock under our Plan, and we will cease granting awards under our Plan.
Unless otherwise indicated, the information in this prospectus assumes:. The following summary consolidated statements of operations data for the years ended January 31, , and and the consolidated balance sheet data as of January 31, have been derived from our audited consolidated financial statements included elsewhere in this prospectus. Our historical results are not necessarily indicative of the results that may be expected in the future.
The last day of our fiscal year is January Consolidated Statements of Operations Data:. Cost of revenue 1. Gross profit. Operating expenses:. Research and development 1. Sales and marketing 1. General and administrative 1.
Total operating expenses. Income loss from operations. Interest income, net. Other income, net. Net income loss before provision for income taxes. Provision for income taxes. Net income loss. Distributed earnings attributable to participating securities 2. Undistributed earnings attributable to participating securities. Net income loss attributable to common stockholders 2. Net income loss per share attributable to common stockholders. Weighted-average shares used in computing net income loss per share attributable to common stockholders.
Pro forma net income per share attributable to common stockholders. Weighted-average shares used in computing pro forma net income per share attributable to common stockholders. Includes stock-based compensation expense as follows:.
Cost of revenue. Research and development. Sales and marketing. General and administrative. Total stock-based compensation expense.
In the years ended January 31, and , we repurchased 4,, and 1,, shares, respectively, of Series A convertible preferred stock from certain existing investors.
The amount paid in excess of the carrying value of the Series A convertible preferred stock is considered a deemed dividend and is reflected as distributed earnings attributable to participating securities in the calculation of net loss attributable to common stockholders. See Note 7 to our consolidated financial statements included elsewhere in this prospectus for more information.
Consolidated Balance Sheet Data:. Cash and cash equivalents. Marketable securities. Working capital. Total assets. Deferred revenue, current and non-current. Convertible promissory notes, net. Convertible preferred stock. Accumulated deficit. Investing in our Class A common stock involves a high degree of risk. Our business, results of operations, financial condition and prospects could also be harmed by risks and uncertainties that are not presently known to us or that we currently believe are not material.
If any of the risks actually occur, our business, results of operations, financial condition and prospects could be materially and adversely affected. Unless otherwise indicated, references to our business being harmed in these risk factors will include harm to our business, platform, reputation, brand, financial condition, results of operations and future prospects.
In such event, the market price of our Class A common stock could decline, and you could lose all or part of your investment. Any decline in new customers and hosts, renewals or upgrades would harm our business. Our business depends upon our ability to attract new customers and hosts and maintain and expand our relationships with our customers and hosts, including upselling additional products to our existing customers and upgrading hosts to a paid Zoom Meeting plan.
A host is any user of our video-first communications platform who initiates a Zoom Meeting and invites one or more participants to join that meeting. Our business is subscription based, and customers are not obligated to and may not renew their subscriptions after their existing subscriptions expire. As a result, we cannot provide assurance that customers will renew their subscriptions utilizing the same tier of their Zoom Meeting plan, upgrade to a higher-priced tier or purchase additional products, if they renew at all.
Renewals of subscriptions to our platform may decline or fluctuate because of several factors, such as dissatisfaction with our products and support, a customer or host no longer having a need for our products, or the perception that competitive products provide better or less expensive options.
In addition, some customers downgrade their Zoom Meeting plan or do not renew their subscriptions. We must continually add new customers and hosts to grow our business beyond our current user base and to replace customers and hosts who choose not to continue to use our platform.
Any decrease in user satisfaction with our products or support would harm our brand, word-of-mouth referrals and ability to grow. We encourage customers to purchase additional products and encourage hosts to upgrade to our paid offerings by recommending additional features and through in-product prompts and notifications. Additionally, we seek to expand within organizations by adding new hosts, having workplaces purchase additional products, or expanding the use of Zoom into other teams and departments within an organization.
At the same time, we strive to demonstrate the value of our platform and various product offerings to those hosts that subscribe to our free Zoom Meeting plan, thereby encouraging them to upgrade to a paid Zoom Meeting plan. However, a majority of these hosts may never upgrade to a paid Zoom Meeting plan. If we fail to upsell our customers or upgrade hosts of our free Zoom Meeting plan to a paid subscription or expand the number of paid hosts within organizations, our business would be harmed.
In addition, our user growth rate may slow in the future as our market penetration rates increase and we turn our focus to upgrading our free hosts to a paid Zoom Meeting plan rather than growing the total number of users. If we are not able to continue to expand our user base or fail to upgrade our free hosts to a paid Zoom Meeting plan, our revenue may grow more slowly than expected or decline. Table of Contents We have a limited operating history, which makes it difficult to evaluate our prospects and future results of operations.
We were incorporated in As a result of our limited operating history, our ability to forecast our future results of operations is limited and subject to a number of uncertainties, including our ability to plan for and model future growth. Our historical revenue growth should not be considered indicative of our future performance. Further, in future periods, our revenue growth could slow or our revenue could decline for a number of reasons, including any reduction in demand for our platform, increased competition, contraction of our overall market, our inability to accurately forecast demand for our platform and plan for capacity constraints or our failure, for any reason, to capitalize on growth opportunities.
We have encountered and will encounter risks and uncertainties frequently experienced by growing companies in rapidly changing industries, such as the risks and uncertainties described herein. If our assumptions regarding these risks and uncertainties, which we use to plan our business, are incorrect or change, or if we do not address these risks successfully, our business would be harmed.
We operate in competitive markets, and we must continue to compete effectively. The market for communication and collaboration technologies platforms is competitive and rapidly changing. Certain features of our current platform compete in the communication and collaboration technologies market with products offered by:.
Other large established companies like Amazon and Facebook have in the past and may in the future also make investments in video communications tools. In addition, as we introduce new products and services, and with the introduction of new technologies and market entrants, we expect competition to intensify in the future.
For example, we recently introduced Zoom Phone, a cloud phone system that will allow customers to replace their existing private branch exchange solution, in the future, which will result in increased competition against companies that offer similar services and new competitors that may enter that market in the future.
Further, many of our actual and potential competitors benefit from competitive advantages over us, such as greater name recognition, longer operating histories, more varied products and services, larger marketing budgets, more established marketing relationships, third-party integration, greater accessibility across devices or applications, access to larger user bases, major distribution agreements with hardware manufacturers and resellers, and greater financial, technical and other resources.
Some of our competitors may make acquisitions or enter into strategic relationships to offer a broader range of products and services than we do. These combinations may make it more difficult for us to compete effectively. We expect these trends to continue as competitors attempt to strengthen or maintain their market positions. Demand for our platform is also price sensitive. Certain competitors offer, or may in the future offer, lower-priced or free products or services that compete with our platform or may bundle and offer a broader range of products and services.
Similarly, certain competitors may use marketing strategies that enable them to acquire customers at a lower cost than we can.
Furthermore, third parties could build products similar to ours that rely on open source software. Even if such products do not include all the features and functionality that our platform provides, we could face pricing pressure from these third parties to the extent that users find such alternative products to be sufficient to meet their video communications needs.
There can be no assurance that we will not be forced to engage in price-cutting initiatives or other discounts or to increase our marketing and other expenses to attract and retain customers in response to competitive pressures, either of which would harm our business.
Table of Contents We may not be able to sustain our revenue growth rate in the future. We have experienced significant revenue growth in prior periods. You should not rely on the revenue growth of any prior quarterly or annual period as an indication of our future performance. We expect our revenue growth rate to decline in future periods. Many factors may contribute to declines in our growth rate, including higher market penetration, increased competition, slowing demand for our platform, a failure by us to continue capitalizing on growth opportunities and the maturation of our business, among others.
Interruptions, delays or outages in service from our co-located data centers and a variety of other factors would impair the delivery of our services, require us to issue credits or pay penalties and harm our business. We also utilize Amazon Web Services and Microsoft Azure for the hosting of certain critical aspects of our business.
As part of our distributed meeting architecture, we establish private links between data centers that automatically transfer data between various data centers in order to optimize performance on our platform.
Damage to, or failure of, these data centers has in the past resulted in and could in the future result in interruptions or delays in our services. In addition, we have experienced, and may in the future experience, other interruptions and delays in our services caused by a variety of other factors, including but not limited to infrastructure changes, vendor issues, human or software errors, viruses, security attacks, fraud, general internet availability issues, spikes in usage and denial of service issues.
In some instances, we may not be able to identify the cause or causes of these performance problems within an acceptable period of time. For example, in January , we experienced an outage in our services for less than two hours, which we later determined was initially caused by a technical issue with one of our vendors.
Despite precautions that we take during this process, any unsuccessful data transfers may impair or cause disruptions in the delivery of our service, and we may incur significant costs in connection with any such move or transfer. Interruptions, delays or outages in our services would reduce our revenue, may require us to issue credits or pay penalties, may subject us to claims and litigation, may cause customers and hosts to terminate their subscriptions and adversely affect our ability to attract new customers and hosts.
Our ability to attract and retain customers and hosts depends on our ability to provide customers and hosts with a highly reliable platform and even minor interruptions or delays in our services could harm our business. Additionally, if our data centers are unable to keep up with our increasing needs for capacity, customers may experience delays as we seek to obtain additional capacity, which could harm our business.
We do not control, or in some cases have limited control over, the operation of the co-located data center facilities we use, and they are vulnerable to damage or interruption from human error, intentional bad acts, earthquakes, floods, fires, hurricanes, war, terrorist attacks, power losses, hardware failures, systems failures, telecommunications failures and similar events, any of which could disrupt our service.
In the event of significant physical damage to one of these data centers, it may take a significant period of time to achieve full resumption of our services, and our disaster recovery planning may not account for all eventualities. Despite precautions taken at these facilities, the occurrence of a natural disaster, an act of terrorism or other act of malfeasance, a decision to close the facilities without adequate notice or other unanticipated problems at the facilities would harm our business.
Failures in internet infrastructure or interference with broadband access could cause current or potential users to believe that our systems are unreliable, possibly leading our customers and hosts to switch to our competitors or to cancel their subscriptions to our platform. Table of Contents Increasing numbers of users and increasing bandwidth requirements may degrade the performance of our platform due to capacity constraints and other internet infrastructure limitations.
As our number of users grows and their usage of communications capacity increases, we will be required to make additional investments in network capacity to maintain adequate data transmission speeds, the availability of which may be limited, or the cost of which may be on terms unacceptable to us.
If adequate capacity is not available to us as our user base grows, our network may be unable to achieve or maintain sufficiently high data transmission capacity, reliability or performance. In addition, if internet service providers and other third parties providing internet services have outages or deteriorations in their quality of service, our users will not have access to our platform or may experience a decrease in the quality of our platform.
Furthermore, as the rate of adoption of new technologies increases, the networks our platform relies on may not be able to sufficiently adapt to the increased demand for these services, including ours.
Frequent or persistent interruptions could cause current or potential users to believe that our systems or platform are unreliable, leading them to switch to our competitors or to avoid our platform, and could permanently harm our business. In addition, users who access our platform through mobile devices, such as smartphones and tablets, must have a high-speed connection, such as 3G, 4G or LTE, satellite or Wi-Fi to use our services and applications. Currently, this access is provided by companies that have significant and increasing market power in the broadband and internet access marketplace, including incumbent phone companies, cable companies, satellite companies and wireless companies.
Some of these providers offer products and subscriptions that directly compete with our own offerings, which can potentially give them a competitive advantage. Also, these providers could take measures that degrade, disrupt or increase the cost of user access to third-party services, including our platform, by restricting or prohibiting the use of their infrastructure to support or facilitate third-party services or by charging increased fees to third parties or the users of third-party services, any of which would make our platform less attractive to users and reduce our revenue.
On January 4, , the Federal Communications Commission FCC released an order reclassifying broadband internet access as an information service, subject to certain provisions of Title I of the Communications Act. The order requires broadband providers to publicly disclose accurate information regarding network management practices, performance characteristics and commercial terms of their broadband internet access services sufficient to enable consumers to make informed choices regarding the purchase and use of such services and entrepreneurs and other small businesses to develop, market and maintain internet offerings.
The new rules went into effect on June 11, and are the subject of various appeals and congressional review. Moreover, a number of states are adopting or considering legislation or executive actions that would regulate the conduct of broadband providers. We cannot predict whether the FCC order or state initiatives will be modified, overturned, or vacated by legal action of the court, federal legislation, or the FCC.
Under the new rules, broadband internet access providers may be able to charge web-based services such as ours for priority access, which could result in increased costs and a loss of existing customers and hosts, impair our ability to attract new customers and hosts, and harm our business. As we increase sales to large organizations, our sales cycles could lengthen, and we could experience greater deployment challenges.
As our business evolves, we may need to invest more resources into sales to large organizations. Large organizations typically undertake a significant evaluation and negotiation process due to their leverage, size, organizational structure and approval requirements, all of which can lengthen our sales cycle.
We may also face unexpected deployment challenges with large organizations or more complicated deployment of our platform. Large organizations may demand additional features, support services and pricing concessions or require additional security management or control features. We may spend substantial time, effort and money on sales efforts to large organizations without any assurance that our efforts will produce any sales or that these customers will deploy our platform widely enough across their organization to justify our substantial upfront investment.
As a result, we anticipate increased sales to large organizations will lead to higher upfront sales costs and greater unpredictability in our business, results of operations and financial condition. Table of Contents We generate revenue from sales of subscriptions to our platform, and any decline in demand for our platform or for communications and collaboration technologies in general would harm our business. We generate, and expect to continue to generate, revenue from the sale of subscriptions to our platform.
As a result, widespread acceptance and use of communications and collaboration technologies in general, and our platform in particular, is critical to our future growth and success.
If the communications and collaboration technologies market fails to grow or grows more slowly than we currently anticipate, demand for our platform could be negatively affected.
Changes in user preferences for communications and collaboration technologies may have a disproportionately greater impact on us than if we offered multiple platforms or disparate products. Demand for communications and collaboration technologies in general, and our platform in particular, is affected by a number of factors, many of which are beyond our control. Some of these potential factors include:. The communications and collaboration technologies market is subject to rapidly changing user demand and trends in preferences.
If we fail to successfully predict and address these changes and trends, meet user demands or achieve more widespread market acceptance of our platform, our business would be harmed. The experience of our users depends upon the interoperability of our platform across devices, operating systems and third-party applications that we do not control, and if we are not able to maintain and expand our relationships with third parties to integrate our platform with their solutions, our business may be harmed.
One of the most important features of our platform is its broad interoperability with a range of diverse devices, operating systems and third-party applications.