12:27 PM EDT, 05/21/2024 (MT Newswires) -- Zoom Video Communications's ( ZM ) fiscal Q1 revenue, earnings, billings and operating margin exceeded consensus amid steady operating execution, continued emerging product and upmarket traction, Oppenheimer said in a note Tuesday.

"Zoom delivered a solid 1QFY25, showcasing strong operating execution and FCF," Oppenheimer analysts, including George Iwanyc, said. "We're also encouraged to see the continued emerging product uptake and stabilizing Enterprise NDER."

They also said Zoom faces macro/rightsizing pressure on seat expansion at renewals, adding that fiscal Q2 is likely to be a low point for year-on-year growth before an improvement in H2.

On demand trends, the analysts said they are largely unchanged, including Online stabilization and easing right-sizing/seat expansion pressure at Enterprise renewals.

"We believe management remains cautious with expansion expectations, setting up reachable/beatable targets for the year," the analysts said. Oppenheimer kept its perform rating on the stock.

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