Zoom CEO Eric Yuan speaks before the Nasdaq opening ceremony in New York on April 18, 2019.
Ken Betancourt | Getty Images
scaling shares rose nearly 7% in extended trading on Monday after the video chat company reported fiscal fourth-quarter results that beat analysts’ estimates and offered an upbeat outlook for full-year earnings.
Here’s how the company did it:
- income: $1.22 per share, adjusted, versus 81 cents, as analysts expected, according to Refinitiv.
- income: $1.12 billion, versus the $1.10 billion analysts expected, according to Refinitiv.
Zoom’s revenue rose 4% year-over-year in the quarter ended Jan. 31, according to the statement. That’s a sharp slowdown from the quadrupling in revenue Zoom enjoyed in 2020 and 2021 as consumers and businesses flocked to the video service during the Covid pandemic.
In the quarter, the company posted its first net loss since 2018, losing $104 million, compared with net income of about $491 million in the same period last year.
Growth will continue to slow this year. Zoom reported revenue of $4.435 billion to $4.455 billion, a 1.1% increase, while analysts were expecting sales of $4.6 billion. The company said adjusted earnings per share would be between $4.11 and $4.18, beating the average estimate of $3.66.
For the fiscal first quarter, adjusted earnings will be between 96 and 98 cents per share on revenue of $1.080 billion to $1.085 billion. Analysts polled by Refinitiv had expected 84 cents in adjusted earnings per share and $1.11 billion in revenue.
Excluding the after-hours change, Zoom shares are up 8% for the year, while the S&P 500 is up 3% over the same period.
During the fourth fiscal quarter, Zoom said it will introduce email and calendar services, as well as a virtual agent chatbot to handle customer service inquiries.
Executives will discuss the results with analysts during a conference call beginning at 5:00 p.m. ET.
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