FINANCIAL REPORTING AND ANALYSIS GREAT LAKES INSTITUTE OF MANAGEMENT DR. S.

BALACHANDRAN

ZOOM CONFERENCE CALL ANALYSIS

Zoom Video Communications, Inc. (ZM: NASDAQ).

This assignment explores the information communicated by companies on a quarterly

conference call. Typically these are held as Telephone conference calls, but Zoom holds
it using Zoom!

You are asked to answer the following questions about Zoom Video Communications,
Inc. Quarterly Conference Call. To Do this Assignment You Need to View the
Conference Call Video Tape. Be sure to address all parts of each questions for
maximum credit. You may discuss the assignment with other students, but each
student must turn in their own independent work.

The Video of the Quarterly Conference Call can be accessed via Zoom’s Investor
Relations Website at the Link provided below:

https://investor.zoom.us/rec/play/
f3vxkyMptkbvhiCr_ch2eiJMTzN9kKdfHLrZz1EwEdWhXLsWpKkFIY8V082e0qtT6YcjDW-
mHlbifqrT.bBCWoKP5-eaJUF2T?continueMode=true&_x_zm_rtaid=Ir18BtieSmqm-k9bf-
On7A.1659997410470.0f2272dca8798458aca00e6cf94c2659&_x_zm_rhtaid=371

Honor Code Statement:

I pledge my honor that I have not violated the Honor Code during this assignment. I
recognize that this is an individual assignment and that I have turned in my own effort
even if I have discussed the assignment or worked in a group setting in preparing this
assignment.

Signature: ________________________________
Background:

Note the In the Homework Assignments about Zoom, You review the Annual Report and the
Quarterly Report. In this Decision Case you view a video replay of Zoom’s management team
making a presentation about their Quarterly Earnings Release, and the prospects of the
company. The video is slightly over an hour long. Please watch the first 22 minutes, this part is
the prepared remarks section of the presentation where Zoom Leadership presents an overview
of how the business is going, and how the financial results are playing out. Please also watch
the next 20 minutes of the Q&A Session in which Financial Analysts, with various financial
companies ask management questions about their results and future expectations.

Case assignment

Please answer the following questions after viewing roughly the first 42 minutes (22 minuntes
prepared remarks, 20 minutes of the Q&A) of Zoom video replay of its conference call.

Part 1) Earnings announcement and the conference call with analysts (Prepared
Section)

1) Who are the key players on the conference call?

a) Which members of Zoom’s management team were involved on the call? What are their
roles with the company? Which played a more active role in the call?

b) Which other members of management do you think would have been helpful to have on
the call? What types of information or insights do you think these additional participants
might have been able to provide? Be specific.

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2) What information was relayed in Conference Call?

a) What were the key financial performance metrics that Zoom’s management emphasized
when presenting the results of the quarter in the accompanying press release and
earnings presentation? You should include at least 3 metrics. Are any of the key metrics
considered non-GAAP measures?

b) Summarize Zoom’s performance for the quarter on each of the key metrics discussed in
part (a). How does performance for each of the three metrics compare to the results for
the metric for the third quarter of last year (Q3, 2020)?

c) What do each of these metrics tell you about Zoom’s performance (i.e., why are they
useful metrics)? Which of the metrics do you find to be the most useful and meaningful
in evaluating Zoom’s performance and why? Be specific .

d) Did management provide guidance for future sales and/or earnings in the press release,
conference call slides or on the call? If so, describe which items are forecasted and for
which future period(s). How does the guidance compare with the results of the recent
performance (e.g., what is the % increase or decrease in the forecasted metric from its
prior period)?

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Part 2: Interaction between management and analysts

Note: The question and answer portion of the conference call begins at approximately the 22:00
minute mark in the webinar.

a) Describe the nature of the questions posted by analysts (i.e., what were some of the
key issues they focused on)? Which aspects of Zoom’s performance or business
operations were most heavily probed? Discuss at least 3 distinct issues or questions in
your answer.

b) Which analyst questions did you find most insightful to help you understand the drivers
of Zoom’s recent performance? Be specific about the questions and what you learned
from the questions and/or response by management.

c) Which questions did you find most insightful to help you think about Zoom future
performance (for example, if you were asked to forecast future sales and profits)?
Discuss why you found these to be useful questions.

d) What questions do you wish had been asked by the analysts to help interpret Zoom’s
results or assess future performance expectations? Create at least 3 questions and
discuss why you would find them useful.