Video conferencing platform Zoom (NASDAQ:ZM) will be announcing earnings results tomorrow afternoon. Here’s what you need to know.

Zoom beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $1.18 billion, up 3.6% year on year. It was a strong quarter for the company, with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates. It added 62 enterprise customers paying more than $100,000 annually to reach a total of 3,995.

Is Zoom a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Zoom’s revenue to grow 2.8% year on year to $1.18 billion, in line with the 2.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.35 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zoom has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Zoom’s peers in the video conferencing segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Five9 delivered year-on-year revenue growth of 16.6%, beating analysts’ expectations by 4%, and RingCentral reported revenues up 7.6%, in line with consensus estimates. Five9’s stock price was unchanged after the results, while RingCentral was down 5.8%.

Read our full analysis of Five9’s results here and RingCentral’s results here.

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the video conferencing stocks have shown solid performance, the group has generally underperformed, with share prices down 3.3% on average over the last month. Zoom’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $92.35 (compared to the current share price of $82.60).

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