Proactive Investors - Zoom Video Communications Inc (NASDAQ:ZM) traded lower in 'afterhours' trade, losing just over 1%, after guidance for its second quarter came shy of expectations.
A forecast of second-quarter sales between $1.145 billion to $1.15 billion underwhelmed Wall Street, as it was beneath an analyst consensus forecast of $1.15 billion
Zoom predicted earnings of $1.20 to $1.24 per share in the second quarter, which was similarly soft versus prevailing market forecasts pitched at $1.24.
It was, however, an otherwise positive set of financials for the video-meeting software firm.
Results for quarter one, meanwhile, impressed with revenue coming in at $1.14 billion, marking a 3% gain compared to the same period last year, whilst net income amounted to $216.3 million for the three months – resulting in $1.35 of earnings per share.
The first quarter beat the predictions of Wall Street analysts who forecasted $1.13 billion of revenue and $1.19 of earnings per share.
Like any good tech company in 2024, Zoom had an artificial intelligence story to tell.
Chief executive Eric Yuan highlighted the progress Zoom has made with its software upgrades for enterprise customers into Zoom Workplace, which now embeds AI tools.
“Our AI-powered collaboration platform that provides customers the ability to reimagine teamwork by streamlining communications, increasing employee engagement and improving productivity within their organizations,” Yuan said in a statement.
Zoom stock was down 1.15% priced at $63.35 after the late trading window.