Zoom Goes Boom

Like other technology companies, Zoom has faced many challenges over the last year or so. And that continued today with its quarterly earnings report.

The company reported better-than-expected adjusted earnings per share ($1.07 vs. $0.84), while revenue of $1.10 billion met expectations. 👍

The economic reopening and increased competition from players like Microsoft have caused Zoom’s growth to plummet. Additionally, as the economy softens and companies look to cut costs, it’s facing a “heightened deal scrutiny for new business.” This means deals take longer to close than in the past.

Net income was down roughly $300 million YoY, and revenues grew just 5%. It now has 209,300 enterprise customers, up from 204,100 last quarter. But its online business, where customers subscribe directly through its website, fell 9%.

Lastly, the company reduced its revenue guidance primarily due to a strong U.S. Dollar. 💵

Overall, investors were not thrilled with the results. Selling pressure sent $ZM shares down another 7% after hours toward its year-to-date lows. 🔻

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Zoom Goes Boom

Shares of the communications technology firm Zoom are rising after fourth-quarter earnings and revenue topped estimates.

Adjusted earnings per share of $1.22 and revenue of $1.12 billion beat the expected $0.81 and $1.10 billion. Annual revenue growth of 4% was its slowest as a public company and well off its pandemic-era highs. 🔻

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