The provider of video chat software reported better-than- expected first-quarter earnings and issued an upbeat forecast for the second period.
The company did it.
Profitability guidance for the current quarter and full year was well above expectations, as Zoom sailed past analysts' earnings estimates for the quarter and 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 As growth slows, the company is able to reduce costs. As investors look for tech companies that can produce earnings, they are also looking for companies that can weather rising inflation and interest rates.
The struggle for shareholders had been going on for a while. After five straight quarters of triple-digit revenue growth, Zoom is now facing a market correction that has hammered stay-at- home stocks the most.
As of Monday's close, Zoom shares were down 85% from their peak in October 2020 and have dropped more than 50% this year.
In the first quarter of the year, revenue grew at a slower rate than in the same quarter a year earlier.
Revenue for the second quarter is now expected to be at least 9.2% higher than the first. According to Refinitiv, analysts were looking for growth of 8.7% to $1.1 billion. The company expects earnings per share to be in the range of 90 cents to 92 cents, higher than the 87 cents analysts were estimating.
Revenue for the full fiscal year is expected to be between $4.53 billion and $4.55 billion. Analysts were expecting earnings of $3.53 per share.
M&A will be a bigger part of the company's strategy in fiscal year 2023, says the CFO.
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