Zoom reports blowout earnings but warns of a coming slowdown

Technology

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Zoom Video Communications Inc. founder and CEO Eric Yuan at the company’s IPO at Nasdaq MarketSite in New York, April 18, 2019.
Victor J. Blue | Bloomberg | Getty Images

Zoom reported better-than-expected results on Tuesday, with sales growth of 191%. But the shares fell as much as 5% in extended trading on concerns of a looming slowdown.

Here’s how the company did:

  • Earnings: $1.32 per share, adjusted, vs. 99 cents per share as expected by analysts, according to Refinitiv.
  • Revenue: $956.2 million, vs. $906.0 million as expected by analysts, according to Refinitiv.

Revenue in the quarter which ended on April 30, jumped from $328.2 million a year earlier, according to a statement. In the previous quarter revenue rose 369%.

Zoom said it expects $1.14 to $1.15 in adjusted earnings per share on $985 million to $990 million in revenue in the fiscal second quarter. Analysts polled by Refinitiv had expected adjusted earnings of 94 cents per share and $931.8 million in revenue.

For the full 2022 fiscal year, Zoom now sees $4.56 to $4.61 in adjusted earnings per share and $3.98 billion and $3.99 billion in revenue. Analysts polled by Refinitiv had been looking for $3.76 in adjusted earnings per share and $3.8 billion in revenue.

Shares of Zoom have fallen about 3% since the start of 2021, while the S&P 500 index is up nearly 12% over the same period.

During the quarter, Zoom announced enhancements to its Zoom Rooms offering for meeting locations, as well as a $100 million venture-capital fund.

Executives will discuss the results with analysts on a Zoom call starting at 5 p.m. Eastern time.

This is breaking news. Please check back for updates.

WATCH: Zoom COO Aparna Bawa on the hybrid working environment

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