Zoom Beats on Estimates in Latest Earnings Release

Proprietary video teleconferencing software program company Zoom reported its third quarter financial results on Monday.

The San Jose, Calif.-based company said its sales rose 35% from a year earlier to $1.05 billion for the three months ended Oct. 31.

In the previous quarter, Zoom’s sales rose 54%. A year earlier, its sales jumped more than 360%.

Additionally, the company had issued better-than-expected guidance and called off its planned $14.7 billion Five9 acquisition during the quarter.

The company did however warn investors of a revenue slowdown at the video-chat company as the pandemic comes to an end. This may have explained why shares fell 6%.

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 were waiting for $1.05 in adjusted earnings per share and $1.02 billion in revenue.

For the third quarter, Zoom reported adjusted earnings of $1.11 a share while analysts per Refintiiv had expected $1.09 a share.

Revenue at $1.05 billion was better than the $1.02 billion that was expected by analsyts per 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.

During the quarter, Zoom announced 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.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.