Zoom beats estimates even as revenue growth is poised to slow after pandemic
Zoom CEO Eric Yuan makes a toast after the Nasdaq opening bell ceremony in New York on April 18, 2019.
Kena Betancur | Getty Images
Zoom shares rose as much as 8% and soon reversed its gains in extended trading on Monday after the video-chat software company reported fiscal third-quarter earnings that exceeded analysts’ estimates.
Here’s how the company did:
- Earnings: $1.11 per share, adjusted, vs. $1.09 per share as expected by analysts, according to Refinitiv.
- Revenue: $1.05 billion, vs. $1.02 billion as expected by analysts, according to Refinitiv.
Revenue increased 35% from a year earlier in the quarter, which ended Oct. 31, slowing from 54% growth in the prior period. Net income jumped 71% to $340.3 million, according to a statement.
For the fiscal fourth quarter, Zoom forecast adjusted earnings of $1.06 to $1.07 per share on $1.051 billion to $1.053 billion in revenue, which would imply 19% growth. Analysts polled by Refinitiv had expected $1.05 in adjusted earnings per share and $1.02 billion in revenue.
During the quarter, Zoom said it had called off its plan to acquire cloud contact center software provider Five9 for $14.7 billion. In announcing the news, Zoom said its own cloud contact center software would launch in early 2022.
Prior to the after-hours move, Zoom shares are down 28% in 2021, while the S&P 500 index is up 25% over the same period. Executives will discuss the results on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.
WATCH: Five9 CEO explains why Zoom deal failed
For all the latest World News Click Here