Stock Market Cafe
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Stock Market Cafe
No Result
View All Result
Home Trading News

Zoom beats estimates even as revenue growth is poised to slow after pandemic

by
November 23, 2021
in Trading News
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

Zoom reported better-than-expected quarterly earnings on Monday, while warning investors of a revenue slowdown at the video-chat company as the pandemic comes to an end.

Here’s how the company did:

RELATED POSTS

FDA advisors recommend replacing original Covid vaccine with bivalent omicron shots for all doses

Luxury retailer LVMH is optimistic as it sees Chinese shoppers and tourists returning

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 implies 19% growth. Analysts polled by Refinitiv had expected $1.05 in adjusted earnings per share and $1.02 billion in revenue.

Zoom stock moved swiftly higher last year as the company expanded from a contender in a narrow category of business software to a fabric of culture. Millions of people adopted its software to remotely attend classes and meet after the coronavirus pandemic made those types of gatherings difficult if not impossible.

Revenue growth was above 300% as recently as the quarter that ended in January. Now Zoom has reported its slowest growth since at least 2018, before its 2019 initial public offering.

While Zoom is reckoning with decelerating growth because so many businesses made their purchases last year, the company is expanding its usage within big organizations. Zoom said that over 2,500 customers are spending more than $100,000 a year, up 94% from the same period a year earlier.

And the company’s Zoom Rooms software is enjoying growth as organizations equip conference rooms for meetings with participants who are not on site. “The conference room strategy has become even more important than it was pre-pandemic,” Kelly Steckelberg, Zoom’s finance chief, said on a Zoom call with analysts.

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.

It’s hard to know how to re-engage with Five9 around a potential deal at a higher priced because Zoom and Five9 are both public companies, Eric Yuan, Zoom’s founder and CEO, said. But Zoom now has $5.4 billion in cash, cash equivalents and marketable securities.

Yuan said analysts should reach out if they know “any other cool companies that can help us, you know, to beef up our investment on that front.”

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.

— CNBC’s Ari Levy contributed to this report.

ShareTweetPin

Related Posts

FDA advisors recommend replacing original Covid vaccine with bivalent omicron shots for all doses

by
January 26, 2023
0

The new COVID-19 booster which includes protection for Omicron at AltaMed Health Services in South Gate on Thursday, October 6,...

Luxury retailer LVMH is optimistic as it sees Chinese shoppers and tourists returning

by
January 26, 2023
0

In this article MC-FR Follow your favorite stocksCREATE FREE ACCOUNT Bernard Arnault, Chairman and CEO of LVMH Moet Hennessy Louis...

Intel shares drop on weak quarterly results and expectations for another quarter of losses

by
January 26, 2023
0

In this article INTC Follow your favorite stocksCREATE FREE ACCOUNT Intel CEO Pat Gelsinger stands in front of a cathedral...

Bed Bath & Beyond warns it can’t pay down debts, defaults on credit line

by
January 26, 2023
0

In this article BBBY Follow your favorite stocksCREATE FREE ACCOUNT Signage is seen through an overturned shopping cart outside a...

Hasbro warns of weak holiday quarter results, cuts 15% of its workforce

by
January 26, 2023
0

In this article HAS Follow your favorite stocksCREATE FREE ACCOUNT Game maker Hasbro Justin Sullivan | Getty Images Shares of...

Next Post

After failed Illumina deal, new PacBio CEO builds for the long run and the short read

4 Energy Stocks Pumping Out Tons of Cash

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Crocs sees fourth-quarter sales up 42%, CEO Andrew Rees says 2021 was ‘exceptional year’

    0 shares
    Share 0 Tweet 0
  • Biden didn’t accept Putin’s ‘red lines’ on Ukraine – here’s what that means

    0 shares
    Share 0 Tweet 0
  • Buying a car from the factory sounds expensive, but it can actually save you money. Here’s how to do it.

    0 shares
    Share 0 Tweet 0
  • The states that won’t tax military retirement in 2022

    0 shares
    Share 0 Tweet 0
  • Roth TSP vs. Roth IRA: How Do They Compare?

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.stockmarket-cafe.com
No Result
View All Result
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.stockmarket-cafe.com