Zoom Video Communications made a sales forecast for the quarter that failed to impress investors who expect the company’s expanded suite of products to improve.
Zoom said in a statement on Monday that revenue was about US$1.18 billion (about Rs 15,17 million). Profits do not include certain items, ranging from $1.29 to $1.30 per share (approximately Rs 110). According to data compiled by Bloomberg, analysts expect adjusted earnings to be $1.17 billion (approximately Rs 98,600 crore).
The stock’s extended trading volume fell by about 4.5% after the New York closing price was $89.03 (approximately Rs 7,503 crore). Despite Zoom’s Outlook Met estimates, the stock has risen about 48% since the company’s last earnings report on its optimism about new products in August.
The software maker is known for video conferencing and has expanded its suite of tools that provide phone systems, contact center applications and artificial intelligence (AI) assistants. In October, Zoom appointed former Microsoft executive Michelle Chang as chief financial officer to replace Kelly Steckelberg, who left Design Startup Canva.
Zoom has increased 59% of its AI assistant’s monthly active users since the last quarter, and the company said in a speech supplementing its earnings statement. It also surpasses 1,250 customers of its contact center app.
While the results are not “significant”, the huge gains from stocks entering Monday’s earnings mean the results may not attract new investors, writes Tyler Radke, an analyst at Citigroup.
Additionally, the company announced that it has removed “video” from its official name, now known as Zoom Communications Inc. “Our new name more accurately reflects our expansion and long-term growth plans,” CEO Eric Yuan wrote in a post announcing the changes.
In the third quarter, sales rose 3.6% to $1.18 billion (about Rs 99.46 crore), while analysts’ average estimate was $1.16 billion (about Rs 97.77 crore), according to data aggregated by Bloomberg. Profit (excluding certain items) was USD 1.38 (approximately Rs 116.32) for the period ended October 31.
Corporate revenue rose 5.8% to US$699 million (approximately Rs 5891 crore). Zoom said that over the past year, 3,995 customers have contributed more than US$100,000 (about Rs 8.42 lakh)
Continuous losses for Zoom’s consumers and small businesses are related to investors, especially since these customers are often higher than corporate customers. The average monthly churn for the quarter was 2.7%, which is better than analysts’ estimates. Sales in the segment have barely changed to $479 million (4037 million). Zhang said this is the lowest online churn ever made by Zoom.
Zoom said its existing stock buyback program increased by $1.2 billion (approximately Rs 10,114 crore), increasing the total authorization of the buyback authorization to $2 billion (approximately Rs 16,857 crore).
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(This story has not been edited by Tech Word News’s staff and is automatically generated from the joint feed.)
