Zoom CEO Eric Yuan makes a toast after the Nasdaq opening bell ceremony in New York on April 18, 2019.
Kena Betancur | Getty Images
Zoom reported better-than-expected quarterly earnings on Monday, while warning investors of a revenue slowdown at the video-chat company as the pandemic comes to an end.
Here’s how the company did:
Earnings: $1.11 per share, adjusted, vs. $1.09 per share as expected by analysts, according to Refinitiv.Revenue: $1.05 billion, vs. $1.02 billion as expected by analysts, according to Refinitiv.
Revenue increased 35% from a year earlier in the quarter, which ended Oct. 31, slowing from 54% growth in the prior period. Net income jumped 71% to $340.3 million, according to a statement.
For the fiscal fourth quarter, Zoom forecast adjusted earnings of $1.06 to $1.07 per share on $1.051 billion to $1.053 billion in revenue, which implies 19% growth. Analysts polled by Refinitiv had expected $1.05 in adjusted earnings per share and $1.02 billion in revenue.
Zoom stock moved swiftly higher last year as the company expanded from a contender in a narrow category of business software to a fabric of culture. Millions of people adopted its software to remotely attend classes and meet after the coronavirus pandemic made those types of gatherings difficult if not impossible.
Revenue growth was above 300% as recently as the quarter that ended in January. Now Zoom has reported its slowest growth since at least 2018, before its 2019 initial public offering.
During the quarter, Zoom said it had called off its plan to acquire cloud contact center software provider Five9 for $14.7 billion. In announcing the news, Zoom said its own cloud contact center software would launch in early 2022.
Prior to the after-hours move, Zoom shares are down 28% in 2021, while the S&P 500 index is up 25% over the same period. Executives will discuss the results on a Zoom call starting at 5 p.m. ET.
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