On Monday, Zoom Communications Incorporated registered mixed results in the fiscal third quarter, outperforming expert’s projections.
Its stock price strengthened by 3.67% to $89.03 per piece on November 25’s Asian afternoon trading. In contrast, it is expected to drop by -5.55% to $84.09 a share in the after-hours session.
In addition, the company’s earnings per share (EPS) fell to $1.38, smashing the analysts’ $1.31 outlook but slightly lower than the previous $1.39 data.
Simultaneously, its revenue jumped to $1.18 billion, shattering the $1.16 billion forecast and figure in the previous quarter. Correspondingly, the software corporations’ revenue advanced by 4.00% year-over-year (YoY) in the quarter.
While it represents a decline from 2021, Zoom has recorded single-digit growth in revenue for two and a half years.
On top of that, the net income of the communications company climbed to $207.10 million or $0.66 per piece. Subsequently, the data is higher than the $141.20 million or $0.45 per share from the same period in 2023.
Moreover, the technology corporation incurred an additional 192,400 enterprise customers in quarter three. Similarly, this is well beyond the 800 customers from the earlier quarter.
Meanwhile, it announced changing its name from Zoom Video Communications to Zoom Communications Incorporated. According to Chief Executive Officer Eric Yuan, the move reflects the company’s evolution.
Software Demand Outlook Ups 2025 Forecast of Zoom
Based on reports, Zoom boosted its revenue and adjusted profit projections for the fiscal 2025. Anticipation of strong online video conferencing software demand prompted the corporation to increase its earnings outlook.
At the same time, it is in the process of expanding its product portfolio and clients are adapting hybrid working models.
On the other hand, Zoom also revealed augmenting its share repurchase plan by $1.20 billion. Similarly, it enhanced its full-year adjusted EPS estimate to a range of $5.41 and $5.43 per share.
However, the tech company will encounter tough competition from Microsoft and Cisco in a saturated market.
