Financial Spotlight: Zoom’s Q3 Earnings Exceed Market Consensus

Zoom Video Communications, Inc. (NASDAQ: ZM) shares saw an uplift of over 1% in after-hours trading, following the announcement of third-quarter results that surpassed market expectations. The company’s Earnings Per Share (EPS) stood at $1.29, eclipsing the anticipated consensus of $1.08.

A 3.2% growth in revenue year-over-year was observed, reaching $1.14 billion and exceeding the forecasted $1.12 billion. Notably, Enterprise revenue scaled to $660.6 million, marking a 7.5% increase from the previous year. However, Online revenue witnessed a slight decline of 2.4%, coming in at $476.1 million.

Zoom’s Enterprise customer base expanded to approximately 219,700 by the quarter’s end, a 5.0% increase year-over-year. A significant highlight is the 3,731 customers contributing over $100,000 in trailing 12-month revenue, showcasing a robust growth of approximately 13.5% year-over-year.

Zoom’s CEO, Eric S. Yuan, remarked on the company’s performance, “The third quarter saw revenues surpassing our own forecasts, as Zoom continues to enhance its comprehensive intelligent collaboration platform. The introduction of advanced features such as the Zoom AI Companion and ongoing improvements in customer and employee engagement solutions are cornerstones of our success. We’re also witnessing promising developments in our Online segment, marked by increased retention and the integration of new AI-driven features, further solidifying the inherent value of our platform.

Looking ahead to the fourth quarter of the fiscal year 2024, Zoom anticipates an EPS ranging between $1.13 and $1.15, which is notably ahead of the consensus estimate of $1.00. Revenue expectations are set between $1.125 billion and $1.13 billion, in line with the consensus projection of $1.13 billion.

For the entirety of the fiscal year, Zoom projects an EPS of $4.93 to $4.95, outstripping the consensus estimate of $4.27, with revenue forecasts of $4.506 billion to $4.511 billion, slightly above the market consensus of $4.5 billion.

If you want to trade CFDs on shares, you can choose to explore the FXORO titles!

Source: https://www.barrons.com/articles/consumer-discretionary-stocks-to-buy-b3014a12?mod=md_stockoverview_news