Business

Zoom Earnings (ZM) Q3 2022

Launch reported better-than-expected quarterly earnings on Monday, while warning investors of a drop in revenue at the video chat company once the pandemic is over.

Here’s how the company did it:

  • Income: $1.11 per share, adjusted, compared with $1.09 per share as analysts expected, according to Refinitiv.
  • Revenue: According to Refinitiv, $1.05 billion versus $1.02 billion as predicted by analysts.

Revenue grew 35% from a year earlier in the quarter ended October 31, slowing from 54% growth during the previous period. Net income rose 71% to $340.3 million, according to a declare.

For the fiscal fourth quarter, Zoom forecasts adjusted earnings of $1.06 to $1.07 per share on revenue of $1.051 billion to $1.053 billion, implying 19 percent growth. %. Analysts polled by Refinitiv had expected $1.05 in adjusted earnings per share and $1.02 billion in revenue.

Zoom stock rose rapidly last year as the company expanded from a competitor in a narrow category of business software to a subculture. Millions of people have used its software to attend classes and meet remotely in the wake of the coronavirus pandemic making those kinds of gatherings difficult if not impossible.

Revenue growth of over 300% as recently quarter ended in January. Zoom has now reported its slowest growth since at least 2018, before going public in 2019.

While Zoom is counting on slowing growth because so many businesses purchased last year, the company is expanding its use in large organizations. Zoom says more than 2,500 customers are spending more than $100,000 a year, up 94% year-over-year.

And the company’s Zoom Rooms software is getting a boost as organizations equip conference rooms for meetings with participants who aren’t physically present. “Conference room strategy has become even more important before the pandemic,” said Kelly Steckelberg, Zoom’s chief financial officer.

During the quarter, Zoom said it had call off its plan to get cloud contact center software provider Year9 for $14.7 billion. When announcing news, Zoom speak Its own cloud contact center software will launch in early 2022.

Eric Yuan, Zoom’s founder and CEO, said it’s hard to know how to re-engage with Five9 around a potential deal for a higher price because Zoom and Five9 are both public companies. But Zoom now has $5.4 billion in cash, cash equivalents, and marketable securities.

Yuan said analysts should get in touch if they know of “any other interesting companies that could help us, you know, to increase our investment on that front.”

Before the after-hours move, Zoom stock was down 28% in 2021, while the S&P 500 index was up 25% year-over-year.

– Ari Levy of CNBC contributed to this report.

https://www.cnbc.com/2021/11/22/zoom-zm-earnings-q3-2022.html Zoom Earnings (ZM) Q3 2022

Emma James

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