Zoom Video Communications provided a sales forecast for the current quarter that did not meet the high expectations of investors who had anticipated a more substantial increase from the company’s widened range of products.
The revenue is estimated to reach approximately $1. 18 billion (equivalent to roughly Rs. 1. 18 billion). Zoom announced on Monday in a statement that it recorded revenue of 15,170 crore in the period ending in January. The projected profit, after excluding certain items, is expected to range from $1. 29 to $1. 30 (approximately Rs. ). A single share. On average, analysts anticipated that adjusted earnings would amount to $1. 28 per share, with sales reaching $1. 17 billion (roughly equivalent to Rs). According to data compiled by Bloomberg, the amount totaled 9,860 crore.
The shares saw a decrease of approximately 4. 5 percent in after-hours trading following a closing price of $89. 03 (about Rs. ). 7,503 crores were invested in New York. Zoom’s performance aligned with expectations, with the stock rising approximately 48% since the company’s previous earnings report in August due to positive sentiment surrounding their new products.
The renowned software developer specializing in video conferencing has broadened its range of solutions to include telephone systems, a contact center application, and Artificial Intelligence (AI) assistants. In October, Zoom appointed Michelle Chang, a former executive at Microsoft, as the new chief financial officer, succeeding Kelly Steckelberg, who departed to join the design startup Canva.
According to a company presentation enhancing its earnings report, Zoom has observed a 59 percent surge in monthly active users of its AI assistant compared to the previous quarter. Additionally, it exceeded 1,250 users of its contact center application.
Tyler Radke, an analyst at Citigroup, mentioned that although there were “no major issues” with the results, the significant increase in shares before Monday’s earnings could potentially deter new investors. Furthermore, the company has recently revealed a change in its official name by dropping the term “video” and will now operate under the new name Zoom Communications Inc. In a post introducing the change, Chief Executive Officer Eric Yuan expressed that our new name better represents our broader scope and ambitions for sustained growth.
In the third quarter of the fiscal year, sales experienced a 3. 6 percent rise, amounting to $1. 18 billion (approximately Rs. ）。 The revenue reached 9,946 crore, exceeding the analysts’ average estimate of $1. 16 billion. According to data gathered by Bloomberg, the amount totals 9,777 crores. The profit, not factoring in certain items, amounted to $1. 38 (approximately Rs. ). __ Each share was valued at 116. 32 during the period ending on October 31.
Enterprise revenue experienced a 5. 8 percent rise, totaling $699 million (approximately Rs. _). Five thousand eight hundred and ninety one crore. Zoom reported that they had 3,995 customers who generously contributed over $100,000 (equivalent to Rs. 84. 2 lakh) over the previous year.
Investors have grown concerned about the continuous decline of consumers and small businesses using Zoom, especially as these customers usually bring in higher profit margins compared to corporate clients. In the quarter, the average monthly churn rate in this segment performed favorably at 2. 7 percent, surpassing the estimates made by analysts. The sales in the segment remained relatively stable at $479 million (4,037 crore). Chang mentioned during the company’s earnings conference call that it was Zoom’s lowest-ever online churn, as stated in the prepared remarks.
Zoom announced that it is incorporating $1. 2 billion (approximately Rs. An additional amount of 10,114 crore has been allocated to the current share buyback initiative, increasing the overall repurchase authorization to $2 billion (approximately Rs. ). Sixteen thousand eight hundred and fifty-seven crore.
