Zoom Looks To Restart Growth

Shares of video communications company Zoom were floating near all-time lows ahead of today’s earnings report. A lack of growth in a competitive market and investors favoring profit-focused companies has weighed on the stock. 😢

However, investors were pleasantly surprised today after it reported better-than-expected results.

Adjusted earnings per share of $1.34 on revenues of $1.14 billion topped the expected $1.05 and $1.12 billion. YoY revenue growth of 3.6% is up marginally from last quarter but still hanging out near its historical lows. 🔺

The company saw 1% YoY growth in enterprise customers (218,100). That resulted in Enterprise revenue growth of 10.2% YoY to $659.5 million. And the number of customers contributing more than $100,000 in trailing on-year revenue jumped 17.8%.  

On the margin side, Zoom’s non-GAAP operating margin came in at 40.5%. Meanwhile, its second-quarter operating cash flow of $336 million rose 30.6% YoY as it focused on cutting costs. ✂️

Current quarter guidance was short of expectations, but executives raised their full-year forecast marginally. The slightly positive news for a change helped $ZM shares bounce about 10% after hours before settling back down to +3%. 

As investors digest the new information, we’ll see how the stock trades in the days ahead. 👀

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Monday.com’s Pretty Good Day

Monday’s can be rough, especially if you’re a pandemic-era software stock that isn’t growing enough to satisfy Wall Street. Luckily for Monday.com, it was able to hurdle over estimates and rise 11%. 👍

The work management platform reported adjusted earnings per share of $0.15, up from last year’s $0.51 loss. Meanwhile, revenues of $189.2 million topped the $182.5 million expected.

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Workhorse’s Wild Ride Continues

It’s been a rough ride for electric vehicle startup investors over the years. But it’s been especially tough for investors in Workhorse Group, with today’s earnings results failing to improve their situation. 👎

The company’s third-quarter revenues of $3.03 million were up 95.5% YoY but missed consensus expectations of $20.9 million by a wide margin. It also expects 2023 revenues to come in between $10 and $15 million, while Wall Street was looking for $63 million. 🔻

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Groupon’s Flash Sale

If you forgot that Groupon was still a publicly traded company, today is your yearly reminder it exists. And as usual, this reminder comes up for the wrong reasons. 😬

The online discounting marketplace tumbled 35% after its third-quarter results of $0.12 in earnings per share on $126.5 million in revenues. Earnings beat consensus estimates by $0.01, but the 12% YoY revenue decline left it below forecasts of $129.7 million. 

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Tech Titans Continue Reporting

While investors are primarily focused on retailer earnings this week, they can’t escape the volatility that comes with tech earnings. Let’s quickly recap what we heard from two tech giants. 📝

First up, cybersecurity firm Palo Alto Networks saw its first-quarter revenues jump 20% YoY to $1.88 billion. Meanwhile, adjusted earnings of $1.38 topped expectations of $1.16.

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