Zoom CEO Eric Yuan speaks ahead of the Nasdaq opening ceremony in New York on April 18, 2019.
Achieved by Betancur | Getty Images
Shares of Zoom fell 11% in extended trading on Monday after video call software maker reported second-quarter tax gains that exceeded analysts ’expectations, but showed slow growth from the previous quarter.
Here’s how the company did it:
- Earnings: According to Refinitiv, $ 1.36 per share, adjusted, against $ 1.16 per share, as analysts expected.
- Income: $ 1.02 million, up from 991.0 million analysts expected, according to Refinitiv.
Revenue rose 54% year-over-year in the quarter, which ended July 31, according to a statement. In the previous quarter, revenue had grown 191%. Next quarter, Zoom will lead to 31% growth.
During the quarter, Zoom announced its intention to acquire contact center software provider Five9 for $ 14.7 billion in stock. The deal comes after Zoom gained millions of new users after the coronavirus emerged and companies rushed to allow online meetings, boosting Zoom’s shares.
Also in the quarter Zoom announced the availability of Zoom Events, which allows organizations to hold top quality online meetings. And Zoom said it invested in event software maker Cvent, as Cvent tried to make itself public through a merger with a special-purpose acquisition company.
With respect to next quarter’s guidelines, Zoom called for adjusted earnings per share from $ 1.07 to $ 1.08 million for $ 1.015 billion to $ 1.02 billion in revenue, implying a 31% revenue growth in the middle of the range. Analysts surveyed by Refinitiv expected adjusted earnings per share of $ 1.09 billion and $ 1.01 billion in revenue.
For the full year, Zoom said it saw adjusted gains of $ 4.75 to $ 4.79 per share and $ 4.005 million to $ 4.015 million in revenue, which is a slump compared to its latest estimates of 4 .56 to $ 4.61 in adjusted revenue from $ 3.98 to $ 3.99 billion in revenue. It is also ahead of analysts ’consensus estimates of $ 4.67 in adjusted earnings per share and $ 4.01 billion in revenue.
The company raised its forecasts for the year as the number of coronavirus cases, including the Covid Delta variant, has increased, and some companies have delayed plans to reopen offices.
Excluding price change after business hours, Zoom shares have risen approximately 3% since the beginning of 2021, following the S&P 500, which rose almost 21% in the same period.
Executives will discuss the results with analysts in a Zoom call starting at 5 p.m. ET.
This is breaking news. Please check for updates again.
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