Video conferencing giant Zoom (ZM) has reportedly lost its Q1 earnings estimates and upward full-year earnings. Shares of the company, which has been pounded this year, have risen in the news.
The quarterly compilation of Bloomberg contains the most significant number of reports here, compared to what analysts had expected.
Revenue: $ 1.07 billion vs. $ 1.07 billion expected
Adjusting EPS: Expected 1.03 vs. $ 0.87
Customers have paid more than 100K in the last 12 months: 2,916 vs. 2,958 Expected
Zoom corrected its full-year consistent earnings per share between $ 3.70 and $ 3.77 $ 3.45 to $ 3.51.
Shares of Zoom have risen more than 16% since the report.
At the onset of the epidemic, Zoom was a favorite home stay, with businesses, schools and governments exploding quarterly revenue growth via remote video chat to keep employees, students and content connected.
As of June 2019, the company reported Q1 earnings of 12 122 million, an increase of 103% year-over-year. By June 2020, Q1 revenue grew 169% and by March 2021, Q4 revenue grew 369%. But that incredible growth has cooled significantly.
As of June 2021, the company reported 191% year-over-year growth, with total revenue of $ 956 million. In Q2, growth slowed to 54%, then to 35% in Q3 and 21% in Q4. Revenue, however, reached $ 1.07 billion.
Zoom’s stock price followed that slump, dropping from a high of 1 691.69 per share on November 17, 2021 to $ 89.87 when the New York market opened on Monday.
Zoom is also expanding its offerings into new categories beyond video chat, including a customer contact center business that brings video, voice, SMS and chat to a single platform. But Piper Sandler senior research analyst James Fish says the company will not be under too much pressure anytime soon.
“There’s not much excitement right now,” Fish told Yahoo Finance. “Communication centers can be that exciting thing, but when you look at the communications center market, it can take a year or more to work out some of these deals through the pipeline.”
What’s more, the fish video chat market doesn’t see much potential for growth.
“Actually, if you haven’t zoomed in yet, you won’t add much to it in the future,” he said.
Still, Fish said Zoom could see double-digit growth in the future. Don’t expect to see it triple-digit increase in the midst of an epidemic.
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