Zoom: Better-than-expected earnings, downgraded its forecasts

Zoom Video Communications Inc. reported adjusted earnings today that beat analysts’ estimates, with the video conferencing company nonetheless revising its full-year forecast downwards, sending its shares into losses in online trading.

Specifically, Zoom reported net income of $45.7 million, or 15 cents per share, for the second quarter, on revenue of $1.1 billion, up from $1.02 billion a year earlier.

On an adjusted basis, Zoom’s earnings came in at $1.05 per share from $1.36 per share a year earlier. The average estimate of analysts polled by FactSet put the company’s adjusted earnings at 94 cents per share on revenue of $1.12 billion.

Zoom’s management said at the same time that it now expects full-year earnings to be between $3.66 and $3.69 per share, on an adjusted basis, on revenue of about $4.39 billion, up from $3.70. on $3.77 per share and sales of $4.53 billion versus $4.55 billion previously.

The company’s chief financial officer, Kelly Steckelberg, cited the stronger dollar, but also the decline in “online activities” as most economies have opened up since the winter lockdowns.

Zoom shares plunge more than 6% in online trading after the results were announced.

Source: Capital

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