Zoom Communications Inc (NASDAQ:ZM) reported strong fourth-quarter and full-year results, supported by enterprise resilience and displacement wins, according to Rosenblatt Securities.

The Zoom Communications Analyst: Analyst Catharine Trebnick maintained a Buy rating and price target of $115.

The Zoom Communications Thesis: The company's results reflected modest revenue growth, resilient enterprise trends and best-in-class profitability, Trebnick said in the note.

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Zoom's total revenues grew 5.3% year-on-year in the fourth quarter to $1,247 billion, exceeding Street estimates by approximately $12 million, she added.

"Zoom Phone ARR continued to grow in the mid teens, supported by several landmark enterprise displacement wins, including a Fortune 10 customer for 140,000 seats," the analyst wrote. ZCX (Zoom Customer Experience) ARR grew in high double digits, she further stated.

All the top 10 CX deals included paid AI, with seven involved "competitive displacements of leading CCaaS incumbents," Trebnick mentioned.

ZOOM Price Action: Shares of Zoom had declined by 13.38% to $74.00 at the time of publication on Thursday.

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