Analysis of the Most Interesting Earnings Reports: ZM, CRWD, DOCU

Within this analysis we focus on the 3 most interesting stocks that have released the earnings reports in the past week:

  • Zoom Video Communications (ZM)
  • Crowdstrike Holdings Inc (CRWD)
  • Docusign Inc (DOCU)

The analysis will take into consideration the financial data reported in the earnings report just released (+ data of the last 5 years) and the stock price performance compared to key levels. For each of the companies there is a chart (+ description) containing the following key levels that could be reached (or exceeded) in the coming weeks:

  • Resistance and Support (black half-lines)
  • Simple moving average 20-day (blue line), 50-day (red line) and 200-day (black line)

The explanation of financial data section can be found at the end of the article.

The information in this article is for informational purposes only and does not constitute investment advice.


Summary

Before going deeper into the individual companies, let’s see together some key data relating to the earnings report released. In particular, the following information is shown in the table:

  • EPS surprise:
    • indicates how much the EPS (Earnings-Per-Share) reported were higher / lower than analysts’ expectations
  • Stock price reaction:
    • indicates the reaction of the stock price on the day of publication of the earnings report
  • Key Data Growth:
    • indicates how much the 3 main items (revenue, net income and net margin) have increased / decreased compared to the same quarter of 12 months before
  • Trend Direction?:
    • Indicates a positive (negative) short, medium and long term trend if the stock price is above (or below) the 20, 50 and 200-day moving average.

Zoom Video Communications (ZM)

Zoom Video Communications Inc. is a provider of video and web conferencing services. The Company unifies cloud video conferencing, online meetings, group messaging and a software-defined video conference room solution into one platform. 

FINANCIALS:

During the last quarter, ZM reported $328 million in revenue, up 169,0% compared to $122 million reported in the same quarter 12 months earlier. In the same period, net income increased by 1131,8% to $27 million, compared to net income of $2 million in the previous period, while net margin was 8,3% , improved by 357,9% compared to the same quarter 12 months earlier.

Focusing on annual data, ZM revenue in the last 4 quarters totaled $829 million, an increase of 1263,2% compared to $61 million in revenue reported 3 years ago. During the same period, ZM reported a 501900,0% increase in net income to $50 million, compared to $0 million net income in the previous period, while the net margin improved by 36726,3% .

KEY CHART LEVELS:

The current price of ZM is $207,60 . The first key level to be overcome on the upside that could lead to a positive trend is the resistance at $224,78 , 8,28% away from the current price. The second key level that if exceeded to the downside could lead at the beginning of a negative trend is the support at $180,22 , -15,19% away from the current price.

Compared to the other 3 key levels to be monitored, ZM is above the 20-day moving average , which indicates the presence of a positive short-term trend, above the 50-day moving average which indicates the presence of a positive mid-term trend and above the 200-day moving average which indicates the presence of a positive long-term trend.


Crowdstrike Holdings Inc (CRWD)

CrowdStrike Holdings Inc. provides cloud-delivered endpoint protection. Leveraging artificial intelligence, the CrowdStrike Falcon(R) platform protects customers against cyberattacks on endpoints on or off the network. 

FINANCIALS:

During the last quarter, CRWD reported $178 million in revenue, up 85,3% compared to $96 million reported in the same quarter 12 months earlier. In the same period, net income increased by 26,2% to -$19 million, compared to net loss of -$26 million in the previous period, while net margin was -10,8% , improved by 60,2% compared to the same quarter 12 months earlier.

Focusing on annual data, CRWD revenue in the last 4 quarters totaled $563 million, an increase of 969,1% compared to $53 million in revenue reported 3 years ago. During the same period, CRWD reported a -47,9% decrease in net income to -$135 million, compared to -$91 million net loss in the previous period, while the net margin improved by 86,2% .

KEY CHART LEVELS:

The current price of CRWD is $93,93 . The first key level to be overcome on the upside that could lead to a positive trend is the resistance at $103,94 , 10,66% away from the current price. The second key level that if exceeded to the downside could lead at the beginning of a negative trend is the support at $83,09 , -13,05% away from the current price.

Compared to the other 3 key levels to be monitored, CRWD is above the 20-day moving average , which indicates the presence of a positive short-term trend, above the 50-day moving average which indicates the presence of a positive mid-term trend and above the 200-day moving average which indicates the presence of a positive long-term trend.


Docusign Inc (DOCU)

DocuSign Inc. provides e-signature solutions. The Company offers services to mortgage, non-profit, government, real estate, insurance, technology and healthcare industries. Its product portfolio includes trial, single-user, multi-user, business pro, enterprise pro, standards-based signatures, ehanko, DocuSign transaction rooms for real estate, DocuSign payments and enotary.

FINANCIALS:

During the last quarter, DOCU reported $297 million in revenue, up 38,8% compared to $214 million reported in the same quarter 12 months earlier. In the same period, net income decreased by -4,6% to -$48 million, compared to net loss of -$46 million in the previous period, while net margin was -16,1% , improved by 24,6% compared to the same quarter 12 months earlier.

Focusing on annual data, DOCU revenue in the last 4 quarters totaled $1.057 million, an increase of 177,1% compared to $382 million in revenue reported 3 years ago. During the same period, DOCU reported a -82,3% decrease in net income to -$210 million, compared to -$115 million net loss in the previous period, while the net margin improved by 34,2% .

KEY CHART LEVELS:

The current price of DOCU is $139,64 . The first key level to be overcome on the upside that could lead to a positive trend is the resistance at $152,00 , 8,85% away from the current price. The second key level that if exceeded to the downside could lead at the beginning of a negative trend is the support at $116,52 , -19,84% away from the current price.

Compared to the other 3 key levels to be monitored, DOCU is above the 20-day moving average , which indicates the presence of a positive short-term trend, above the 50-day moving average which indicates the presence of a positive mid-term trend and above the 200-day moving average which indicates the presence of a positive long-term trend.


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FINANCIAL DATA

– Explanation –

This section shows some key financial data contained in the company’s income statement, updated to the latest available earnings report. The 2 tables are as follows:

FIRST TABLE – “Key Data in the past 5 years”

“Key Data in the past 5 years” table shows the amount of Revenue, Net Income and Net Margin (the percentage of Revenue that turns into Net Income) reported in the last year or in the last 4 quarters (TTM-trailing 12-months). In the same table you can find the percentage increase (or decrease) of the 3 items in the last 3 years.

To the right of the table you find a chart containing the trend of Revenue in the last 5 years (green columns) and the trend of Net Income (red line) in the same period. Inside the same chart you will find a semi-transparent line that show the trend line of the Revenue in the last years.

This section is useful for understanding if the company has been growing in recent years.

SECOND TABLE – “Key Data in the last Earnings Report”

“Key Data in the last Earnings Report” table shows the data of the same items of the previous table, but with reference to the last earnings report released by the company in comparison with the same quarter of 12 months before.

On the right of the table you will find the relative chart containing the trend of Revenue (green columns) and Net Income (red columns) in the 2 quarters taken into consideration (current versus last year’s quarter).

This section is useful for understanding if the company has grown in the last quarter compared to the same quarter of last year.

Data are expressed in millions of dollars.


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Sources & additional info

*Chart by stockcharts.com
*EPS surprise and company description by barchart.com


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