Zoom reports blowout earnings but warns of a coming slowdown

Earnings

In this article

Zoom Video Communications Inc. founder and CEO Eric Yuan at the company’s IPO at Nasdaq MarketSite in New York, April 18, 2019.
Victor J. Blue | Bloomberg | Getty Images

Zoom reported better-than-expected results on Tuesday, with sales growth of 191%. But the shares fell as much as 5% in extended trading on concerns of a looming slowdown.

Here’s how the company did:

  • Earnings: $1.32 per share, adjusted, vs. 99 cents per share as expected by analysts, according to Refinitiv.
  • Revenue: $956.2 million, vs. $906.0 million as expected by analysts, according to Refinitiv.

Revenue in the quarter which ended on April 30, jumped from $328.2 million a year earlier, according to a statement. In the previous quarter revenue rose 369%.

Zoom said it expects $1.14 to $1.15 in adjusted earnings per share on $985 million to $990 million in revenue in the fiscal second quarter. Analysts polled by Refinitiv had expected adjusted earnings of 94 cents per share and $931.8 million in revenue.

For the full 2022 fiscal year, Zoom now sees $4.56 to $4.61 in adjusted earnings per share and $3.98 billion and $3.99 billion in revenue. Analysts polled by Refinitiv had been looking for $3.76 in adjusted earnings per share and $3.8 billion in revenue.

Shares of Zoom have fallen about 3% since the start of 2021, while the S&P 500 index is up nearly 12% over the same period.

During the quarter, Zoom announced enhancements to its Zoom Rooms offering for meeting locations, as well as a $100 million venture-capital fund.

Executives will discuss the results with analysts on a Zoom call starting at 5 p.m. Eastern time.

This is breaking news. Please check back for updates.

WATCH: Zoom COO Aparna Bawa on the hybrid working environment

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *