Zoom Video Communications Inc. shares rose in extended trading Monday after the videoconferencing company beat expectations for its earnings as well as its forecast for the year ahead, calming nerves about a company that recently laid off 15% of staff as a pandemic-era boom calmed.
Zoom ZM posted a fiscal fourth-quarter net loss of $104.1 million, or 36 cents a share, on revenue of $1.12 billion, up from $1.07 billion a year ago. After adjusting for stock compensation and other effects, Zoom reported earnings of $1.22 a share, down from $1.29 a share last year but easily topping analysts’ expectations. Analysts surveyed by FactSet had on average expected adjusted net income of 81 cents a share on revenue of $1.1 billion.
“While the macroeconomic situation continues to negatively impact our overall growth, we have maintained a healthy balance sheet and operating cash flow generation of approximately $1.29 billion,” Zoom Chief Executive Eric Yuan said in a statement announcing the results. In the days leading up to Zoom’s results, analysts expressed skepticism as outlined by Bernstein’s Peter Weed in a note to clients last week. “During FQ3 earnings management remained pessimistic that their post-COVID hangover would continue, guiding growth at 2.5% YoY and roughly 0% QoQ,” Weed wrote.
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Source: CNBC - 🏆 12. / 72 Read more »