Yuan Zheng, founder and CEO of Zoom Video Communications, delivers a speech at Concordia’s annual summit in New York on September 25, 2024.
Leigh Vogel | Concordia Summit | Getty Images
skyrocketing Shares were flat in after-hours trading on Monday after the video calling software maker reported strong third-quarter earnings and gave guidance that was in line with expectations.
Here’s how the company compares to the LSEG consensus:
- Earnings per share: Adjusted $1.38, expected $1.31
- income: $1.18 billion vs. $1.16 billion expected
Zoom’s revenue rose about 4% annually in the quarter ended Oct. 31, according to one company. statement. Zoom’s revenue has grown by single digits in two and a half years, a sharp reversal from 2020 and 2021, when Covid caused the company to triple the size of its business.
Net income was $207.1 million, or 66 cents a share, up from $141.2 million, or 45 cents a share, a year earlier.
The company reported 192,400 enterprise customers for the quarter, an increase of 800 from the previous quarter.
In terms of guidance, Zoom expects fourth-quarter adjusted earnings per share of $1.29 to $1.30 and revenue of $1.175 billion to $1.180 billion. Analysts polled by LSEG expected earnings of $1.29 per share and revenue of $1.17 billion.
Zoom raised its forecast for fiscal 2025. Adjusted earnings per share are expected to be $5.41 to $5.43, with revenue of $4.656 billion to $4.661 billion. The middle of the income range implies about 3% growth.
The LSEG consensus is $5.35 per share and revenue of $4.64 billion. August, Zoom explain The company expects earnings per share of $5.29 to $5.32 on revenue of $4.630 billion to $4.640 billion.
This quarter, Zoom said it would release premium in the first half of 2025 Customized AI companion Can connect to enterprise vocabularies and services such as Immediate service and working days. Zoom is also starting to offer One-time webinar option for up to 1 million attendees.
As of Monday’s close, Zoom shares were up about 24% this year, while the S&P 500 index was up 25%.
The company also said its corporate name will be changed from Zoom Video Communications to Zoom Communications Inc.
“This change reflects our evolution toward an AI-first, human-connected work platform and our vision for long-term growth,” Zoom founder and CEO Eric Yuan said on a conference call with analysts. . prepared speech.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.
watch: Chris Grisanti of MAI Capital said that despite Zoom’s weak growth, it is still worthy of investors’ re-examination
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