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Motley Fool Hidden Gems Investing

Retail Shrink Gets Bigger?

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 22 August 2023

⏱️ 20 minutes

🧾️ Download transcript

Summary

Dick’s is the latest retailer to feel the pinch of shrink – just remember all theft is shrink, not all shrink is theft.  (00:21) Asit Sharma and Dylan Lewis discuss: - Zoom’s customer-driven approach to AI and how the company’s cash hoard is showing up in its earnings.  - How a decrease in DIY is impacting Lowe’s results. - Dick’s management joins the ranks of retailers dealing with theft affecting results.  Companies discussed: ZM, LOW, DKS Host: Dylan Lewis Guests: Asit Sharma Engineers: Dan Boyd  Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

I'm Dylan Lewis, and I'm joined over the airwaves by Motley Full Analyst, Asset Sharma.

0:24.8

Asset, thanks for joining me.

0:26.3

Dylan, thank you for having me.

0:27.7

We've got updates on DIY spend, another retailer feeling the pinch of theft, but we're going

0:33.2

to kick off today looking at everyone's favorite e-conferencing, everything company, it's

0:39.4

for meetings, it's for talking your relatives, it's Zoom, Asset, the company reported

0:44.4

results, shares up 4% after what looked like a pretty decent quarter for Zoom, almost

0:50.1

4% year-over-year growth on the top line, we saw a net income up to 182 million compared

0:57.6

to 45 million in the quarter a go, what jumped out to you in the company's results?

1:02.8

Dylan, I think that the deceleration that we've seen with Zoom is starting to even out

1:09.1

a bit, so enterprise business, that's the part of the business which you're selling

1:14.6

to enterprise customers, large contracts, contracts over 100,000 bucks a year, those seem

1:19.7

to be growing, I note that the contact center business, which is something that Zoom basically

1:26.5

built in-house has now reached over 500 customers, they were discussing this in the call in

1:32.4

just six quarters, so while we don't have a company that seems to be rejuvenated on

1:38.7

the top line, it becomes increasingly interesting from an earnings perspective, from a cash flow

1:45.1

perspective, I mean this is a company that looked like maybe net income would start to wobble

1:51.7

a bit, but a very solid quarter on the bottom line, Zoom had $182 million in net income,

1:58.4

so more to talk about here, but I see stabilization is my main takeaway from this earnings report.

2:04.0

You mentioned the growth profile there, management reiterated the full year guidance implying

2:09.7

2% growth for the year, so this is definitely a different look business than maybe where they

2:14.5

were a couple of years ago, some of what we were seeing in terms of their full year outlook

...

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