Zoom Earnings: Strong Period With Contact Center Experiencing Good Momentum

We are maintaining our fair value estimate of $89 per share for narrow-moat Zoom after the company reported good fiscal first-quarter results above our expectations on both the top and bottom lines. At the same time, full-year guidance was raised but by less than upside in the quarter. We made only modest changes to our model based on guidance, and we continue to view the stock as undervalued. Results show a continuation of trends from the last several quarters, with enterprise growth and margins the most obvious areas of strength. Management still believes the second quarter will be the trough for revenue growth and expects to see modest top-line acceleration in the year's second half. Finally, the company repurchased 2.4 million shares for an aggregate price of $150 million.