Eric Yuan, founder and chief executive officer of Zoom Video Communications Inc., speaks during the BoxWorks 2019 Conference at the Moscone Center in San Francisco, California, U.S., on Thursday, October 3, 2019.
Short Michael | Bloomberg
Media Video Zoom Shares fell as much as 8% in extended trading Monday after the video-calling software maker scrapped its full-year forecasts for earnings and revenue.
Here’s how the company did it:
- Income: $1.05 per share, adjusted, compared with 94 cents per share as analysts expected, according to Refinitiv.
- Turnover: According to Refinitiv, $ 1.10 billion, compared with $ 1.12 billion as predicted by analysts.
Zoom’s revenue for the fiscal second quarter grew 8% year-over-year, slowing from 12% growth in last quarterfollow a statement. The fiscal second quarter ended July 31. Zoom’s net income fell to $45.7 million in the quarter from $316.9 million in the previous quarter.
Kelly Steckelberg, Zoom’s chief financial officer, said the strong US dollar, the company’s online business and strong sales at the end of the quarter had a negative impact on revenue for the quarter.
The company said at the end of the quarter it had about 204,100 enterprise customers, which are business units where Zoom’s direct sales teams, resellers or partners work. This is up less than 3% from 198,900 three months earlier. Online business customers are Zoom customers who do not work directly with Zoom salespeople, resellers, or partners.
In terms of guidance, Zoom called for a fiscal third-quarter earnings adjustment from 82 cents/share to 83 cents/share on revenue between $1.095 billion and $1.1 trillion. Analysts polled by Refinitiv looked for 91 cents in adjusted earnings per share and $1.15 billion in revenue.
Management lowered its forecast for the full fiscal year 2023, calling for between $3.66 and $3.69 in adjusted earnings per share and $4.385 billion to $4.395 billion in revenue. Analysts surveyed by Refinitiv had expected $3.76 per share in adjusted earnings and revenue of $4.54 billion. The view three months ago was $3.70 and $3.77 in adjusted earnings per share, and revenue was between $4,530 billion and $4,550 billion.
During the quarter, Zoom announced a new pricing structure called Zoom one and said it has agreed to acquire conversational artificial intelligence software startup Solvvy. Citi downgraded Zoom stock for sale from holding parity last week, citing increased competition and economic pressures on small and medium businesses and less-essentials spending. than.
Excluding the after-hours move, Zoom stock is down 47% so far this year, while the S&P 500 is down 13% over the same period.
Executives will discuss the results with analysts during a Zoom call starting at 5 p.m. ET.
This story is evolving. Please check back for updates.
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