Zoom CEO Eric Yuan speaks before the Nasdaq Opening Ceremony in New York, April 18, 2019.
Kena Betancur | Getty Images
Magnification The shares rose 8% in prolonged trading on Monday after the video chat company reported its fiscal fourth quarter results, which beat analyst estimates and offered upbeat profit forecasts for the yr.
Here’s how the corporate fared:
- Profits: $1.22 per share, adjusted, compared with the 81 cents expected by analysts, in response to Refinitiv.
- Income: $1.12 billion in response to Refinitiv versus $1.10 billion analysts had expected.
Zoom’s revenue grew 4% year-on-year within the quarter ended Jan. 31, in response to a statement. That’s a dramatic slowdown in comparison with the quadruple revenue growth Zoom achieved in 2020 and 2021 as consumers and businesses flocked to the video service throughout the Covid pandemic.
The company posted its first net loss since 2018 within the quarter, losing $104 million in comparison with net income of roughly $491 million within the year-ago period. The loss is because of share-based compensation costs.
Zoom continued to struggle with issues it encountered earlier within the 2023 fiscal yr throughout the quarter, including executives taking a detailed look before agreeing to pay the corporate for services, CEO Eric Yuan told analysts in a conference call.
Growth will proceed to slow this yr. Zoom sees $4.435 billion to $4.455 billion in revenue, up 1.1%, while analysts had expected sales of $4.6 billion. The company said adjusted earnings per share can be between $4.11 and $4.18, beating its average estimate of $3.66.
For the primary fiscal quarter, adjusted earnings will probably be between 96 cents and 98 cents per share on revenue of $1.080 billion to $1.085 billion. Analysts polled by Refinitiv had expected 84 cents of adjusted earnings per share and $1.11 billion in revenue.
Excluding after-hours traffic, Zoom shares are up 8% over the yr, while the S&P 500 gained 3% over the identical period.
In Zoom’s fiscal fourth quarter he said it could introduce email and calendar services, in addition to a virtual agent chatbot to handle customer support queries.
Management will discuss the outcomes with analysts in a conference call starting at 5:00 p.m. EST.
TO WATCH: Cramer’s lightning round: Zoom Video needs a merger
