Video-calling software provider Zoom reported fiscal second-quarter results that exceeded analysts’ expectations, leading to an 8% rise in its shares during extended trading. Here’s a breakdown of the results:
Earnings: Adjusted earnings of $1.34 per share, compared to the expected $1.05 per share.
Revenue: $1.14 billion, exceeding the expected $1.12 billion.
Zoom’s revenue grew by 3.6% year over year for the quarter ending on July 31, with net income rising to $182 million, or 59 cents per share, compared to $45.7 million, or 15 cents per share, for the same quarter last year. However, Zoom’s growth rate has slowed considerably compared to the rapid expansion seen during the pandemic.
The company reported having around 218,100 enterprise customers by the end of July, representing a 1% increase from April 30. Zoom defines enterprise clients as those who work with the company’s direct sales teams, resellers, or partners.
While Zoom’s quarterly guidance slightly missed the mark, its management raised the full-year forecast, now expecting adjusted earnings per share of $4.63 to $4.67 and revenue of $4.485 billion to $4.495 billion for the full 2024 fiscal year.
Zoom’s contact center software for customer service is experiencing fast growth, with over 500 customers currently. This expansion follows the company’s failed attempt to acquire Five9, as the price of the contact center software was considered “highly disruptive.”
Despite the positive earnings report, Zoom’s stock has faced challenges this year, declining about 1%, while the S&P 500 index has risen by 15% over the same period.
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