Eric Yuan, CEO, Zoom Video Communications
Source: CNBC
Launch Shares fell more than 5% in extended trading on Monday after the video chat company issued weaker-than-expected revenue guidance for the full fiscal year.
Here’s how the company did it:
- income: According to Refinitiv, $1.07 per share, adjusted, compared with 84 cents per share as analysts expected.
- Turnover: $1.10 billion, compared with $1.10 billion as analysts expected, according to Refinitiv.
Two years ago, at this point, Zoom’s challenge was to meet demand, as pandemic-driven usage increased revenue. more than 300% in 2020.
Since then, Zoom’s struggle has adapted to a pandemic-free reality. The stock has lost more than 85% of its value since peaking in October 2020, including a drop of more than 50% this year.
Revenue for the latest quarter, which ended October 31, was up 5% from a year earlier, according to a statement. In the previous quarter Revenue increased by 8%. Net income plummeted to $48.4 million from $340.3 million in the previous quarter.
After the stock skyrocketed in 2020, Zoom faced two dual problems of reopening the economy and increased competition, most notably from Microsoft, has poured money into its Teams video and collaboration service. Many business and personal meetings are happening in real life, and those that take place online don’t have to be over Zoom.
Zoom CEO Eric Yuan said on Zoom’s earnings call the company is seeing “thorough scrutiny of the deal for new business”.
Zoom is still adding large enterprise customers. At the end of the quarter, Zoom had 209,300 business customers, up from 204,100 a quarter earlier. The company says its online business – including customers who sign up directly through its website – has dropped 9%.
Zoom guides lower revenue, mainly due to a stronger US dollar.
The company expects revenue for this fiscal year of $4.37 billion to $4.38 billion, down slightly from its August forecast and below analysts’ median estimate of $4.30 billion. $ ,4 billion. Adjusted earnings would be $3.91 per share to $3.94 per share, higher than estimates and above the company’s previous forecast.
Zoom’s forecast implies 5% revenue growth in the fiscal fourth quarter.
CLOCK: Zoom CFO says customers are willing to pay for company products
