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Zoom Video (ZM) Earning To Be Released Today, Postmarket - YouTube
Channel: TD Ameritrade Network
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earnings coming up. The stack is
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way way dnow. Joining us from C
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F R a Keith Snyder, equity
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analyst covering the sto.ck With
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the hold rating, but at 50$3
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Price target, Keith It's almost
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like an implicit by that's a
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long ways away from here. Yep it
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is. And I mean, that target can
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certainly come downwdar. You
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know, this earnings season is
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going to be very interesting,
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especilyal after the last
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quarter. Um you know, it was
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still the numrsbe are pretty
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good. But there guys pretty
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soft, and I think they. Really
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did a gdoo job, You know,
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tempering expectations coming
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into this quarter.ut B now you
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have kind of the drama
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surrounding the 59 deal falling
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throughUm. and really, this is
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not only kind of a, you know,
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llte to how the pandemic is
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winding down, but also it's you
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know what is next to this
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company? They had placed a lot
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of eggs into the basket of
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moving to the call center market
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and without this deal. You know,
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that's gonna be a very difficult
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task to accomplish. So you know
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what? I'm really looking for it.
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Hopefully here from the company
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is what are they planning? Next?
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How are they going to move
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forward with this? Because they
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really have to their core
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business is You know it's
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struggling to continued in the
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momentum they built up over the
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last five quarters, and so.
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We're going to have to see where
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they're going, You know, over
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the next five. Keith Do you
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think that they're you know the
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omzo phone and some of the other
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ideas they've talked about
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having virtual like community
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work places and from a
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conference standpoint, I mn,ea
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Is anything in the realm of
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remote not going to do the trick
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from the at this point. I mean,
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is that now kdin of like an
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albatross hanging over them, as
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opposed to some great value
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proposition. Yeah. I mean, you
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know those ideas. I kind of feel
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like they're they're almost
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gimmicky in away from and we've
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seen competitors. You know,
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Cisco's WebEx program is, you
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know, thinngki about getting
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into the virtual reality and
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augmented reality space for
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conferencing. You know, I don't
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think Microsoft is gonna be too
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far behind them if they move in
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that direction. So you know, the
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whole space is mongvi towards
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these kind of, you know, really
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techie solutions to, y kounow,
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problems that made not totally
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exist right now, Um, and a lot
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of that is just customer
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retention. It's you know,
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switching cost is so l.ow That
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you need that hook to keep
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customers coming back to your
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platform and really hold on to
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market share. So you know, I
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would say this is not a savior
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for the company, but rather it's
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something they have to do to
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keep up with the rest of the
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space. What is that churn rate
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looked like going forward. I
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mean, are we talking like
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cancelations here for zoom or we
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talking stju. I lack of wne
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subscribers and users. I mean,
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we're in the cancelations
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discussion, aren't we? I think
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we are. Um I mean, the good
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thing for Zoom is actually that
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we think we're going to see a
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pretty large drop off in just
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the number three users. Um which
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you know it exploded during the
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pandemic, as essentially became
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the poster child of. You know,
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lockwndo communications amongst
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friends groups, But that's a
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good thing for Zoom. You know,
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these free users are just a drag
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on margins. It takes up hardware
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resources for the company to
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keep on hosting these meetings.
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Um but then on the you know the
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business side. Um I think this
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is a story of how do you hold on
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to the customers you already
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have. It's not just winning new
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customers. Because at this
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point, we don't think the market
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pie is growing at all. It's
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trying to get a bigger slice of
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it. And that's really going to
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be the challenge. Going forward
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for the company is You know? Not
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only to keeping your existing
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customers with you know new
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features for the platform.
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Attractive prices plan pricing.
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Um it's you know, how do you win
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customers from WebEx? How do you
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take them from Microsoft Teams?
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Um. You know, bothf o which are
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hard to do. These bigger
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companies have large ecosystems
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built around theiron cferencing
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products. You know, especially
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Microsoft teams has an entire
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platrmfo for work. Collaboration
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that right now just zoom can't
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really match And so you know,
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that's where we think they're
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gonna have to really put a lot
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of R and D dollars into catching
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up with those platforms in terms
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of You know the messaging
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services that maybe even the
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document storage and document
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sharing services. Um you know,
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these are all things that need
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to be bolstered for zmoo to
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continue to do Well, all right.
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There it is, Man. That's the
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rub. Keith. And do some trading
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in anticipation of the report
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now and we'll oklo
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