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. 🔻
Executives expect growth will continue to slow this year, with Zoom seeing $4.435 to $4.455 billion in revenue, implying 1.1% YoY growth. That’s also slightly below the $4.6 billion expected by analysts.
The company is rolling out additional product features like email and calendar services, a virtual agent chatbot, and more to help it compete in a crowded market and reaccelerate growth. It hopes to become a broader communications platform for business owners.
Cost-cutting efforts are also starting to pay off for the company. It now expects adjusted earnings per share of $4.11 to $4.18 in fiscal 2023, beating the $3.66 consensus estimate. 💪
$ZM shares were 6% on the news but picked up steam during the company’s earnings call, which began at 5:00 pm ET. 📈
