Zoom Revenue Up on Growth From Big Customers
Zoom Video Communications Inc.
ZM -0.28%
posted higher sales in the fourth quarter on strong growth from enterprise customers and forecast profit ahead of Wall Street expectations.
The videoconferencing company on Monday said sales grew 4% to $1.12 billion, just ahead of the $1.1 billion expected by analysts recently polled by FactSet. Enterprise revenue rose 18% compared with last year, while online revenue, which measures individual customers, fell 10%.
Looking ahead, Zoom guided for adjusted profit for the current quarter and coming year ahead of Wall Street estimates, although its sales forecasts came in short.
Shares rose more than 5% in aftermarket trading. The stock is down about 41% over the last 12 months.
For the quarter ended Jan. 31, Zoom said it reported a loss of $104.1 million, or a loss of 36 cents a share, compared with net income of $490.5 million, or $1.60 a share, in the year-ago period. Adjusted earnings were $1.22 a share, above estimates of 81 cents a share. The company said the quarterly loss was tied to stock-based compensation expenses and other items.
Chief Executive
Eric Yuan
said that overall growth continues to be weighed down by the macroeconomic environment.
For the current quarter, Zoom expects revenue between $1.08 billion and $1.09 billion and adjusted per-share earnings between 96 cents and 98 cents a share. Analysts had forecast revenue of $1.11 billion and adjusted per-share earnings of 86 cents.
Full-year revenue is expected between $4.44 billion and $4.46 billion, below expectations of $4.6 billion, while per-share earnings are seen between $4.11 and $4.18 on an adjusted basis, topping expectations for $3.66.
Zoom’s results come after companies across all industries—but particularly in technology—have reported slower growth as deals take longer to close and budgets are tightened. Layoffs have resulted. Zoom earlier this month said it is laying off 1,300 employees, or 15% of its staff.
A broad return to prepandemic conditions has resulted in more workers in offices, curbing the need for videoconferencing platforms such as Zoom’s that became a staple during lockdowns and work-from-home setups in the earliest days of the pandemic.
Write to Denny Jacob at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the February 28, 2023, print edition as ‘Zoom Revenue Rises as Big Customers Join.’
Zoom Video Communications Inc.
ZM -0.28%
posted higher sales in the fourth quarter on strong growth from enterprise customers and forecast profit ahead of Wall Street expectations.
The videoconferencing company on Monday said sales grew 4% to $1.12 billion, just ahead of the $1.1 billion expected by analysts recently polled by FactSet. Enterprise revenue rose 18% compared with last year, while online revenue, which measures individual customers, fell 10%.
Looking ahead, Zoom guided for adjusted profit for the current quarter and coming year ahead of Wall Street estimates, although its sales forecasts came in short.
Shares rose more than 5% in aftermarket trading. The stock is down about 41% over the last 12 months.
For the quarter ended Jan. 31, Zoom said it reported a loss of $104.1 million, or a loss of 36 cents a share, compared with net income of $490.5 million, or $1.60 a share, in the year-ago period. Adjusted earnings were $1.22 a share, above estimates of 81 cents a share. The company said the quarterly loss was tied to stock-based compensation expenses and other items.
Chief Executive
Eric Yuan
said that overall growth continues to be weighed down by the macroeconomic environment.
For the current quarter, Zoom expects revenue between $1.08 billion and $1.09 billion and adjusted per-share earnings between 96 cents and 98 cents a share. Analysts had forecast revenue of $1.11 billion and adjusted per-share earnings of 86 cents.
Full-year revenue is expected between $4.44 billion and $4.46 billion, below expectations of $4.6 billion, while per-share earnings are seen between $4.11 and $4.18 on an adjusted basis, topping expectations for $3.66.
Zoom’s results come after companies across all industries—but particularly in technology—have reported slower growth as deals take longer to close and budgets are tightened. Layoffs have resulted. Zoom earlier this month said it is laying off 1,300 employees, or 15% of its staff.
A broad return to prepandemic conditions has resulted in more workers in offices, curbing the need for videoconferencing platforms such as Zoom’s that became a staple during lockdowns and work-from-home setups in the earliest days of the pandemic.
Write to Denny Jacob at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the February 28, 2023, print edition as ‘Zoom Revenue Rises as Big Customers Join.’
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