Zoom CEO Eric Yuan speaks before the Nasdaq opening bell ceremony in New York on April 18, 2019.
Kena Betancur | Getty Images
Zoom shares fell more than 8% in extended trading on Monday after the video-calling software maker reported fiscal second-quarter earnings that beat analysts’ expectations, but showed slowing growth versus the previous quarter.
Here’s how the company did:
- Earnings: $1.36 cents per share, adjusted, vs. $1.16 per share as expected by analysts, according to Refinitiv.
- Revenue: $1.02 billion, vs. $991.0 million as expected by analysts, according to Refinitiv.
Revenue increased by 54% year over year in the quarter, which ended on July 31, according to a statement. In the previous quarter revenue had grown 191%. Next quarter, Zoom is guiding to 31% growth.
In the quarter Zoom announced its intent to acquire cloud contact center software provider Five9 for $14.7 billion in stock. The deal comes after Zoom gained millions of new users after the coronavirus emerged and companies rushed to enable online meetings, pushing up Zoom’s stock.
Also in the quarter Zoom announced the availability of Zoom Events, which gives organizations the ability to hold premium online meetings. And Zoom said it invested in event software maker Cvent as Cvent sought to go public through a merger with a special-purpose acquisition company
With respect to next quarter’s guidance, Zoom called for $1.07 to $1.08 in adjusted earnings per share on $1.015 billion to $1.020 billion in revenue. Analysts polled by Refinitiv had expected adjusted earnings per share of $1.09 and $1.01 billion in revenue.
For the full fiscal year, Zoom said it sees adjusted earnings of $4.75 to $4.79 per share and $4.005 million to $4.015 million in revenue — that’s a bump from its last estimates of $4.56 to $4.61 in adjusted EPS on $3.98 to $3.99 billion in revenue. It’s also ahead of analysts’ consensus estimates of $4.67 in adjusted earnings per share and $4.01 billion in revenue.
Not including the after-hours price change, Zoom stock is up about 3% since the start of 2021, trailing the S&P 500, which is up almost 21% over the same period.
Executives will discuss the results with analysts on a Zoom call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.
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