Communications company Zoom Video Communications Inc (NASDAQ: ZM) reported second-quarter financial results after market close Monday. Here are the key highlights.
What Happened: Zoom reported second-quarter revenue of $1.1 billion, an 8% year-over-year increase. The total came in shy of a Street estimate of $1.12 billion, according to data from Benzinga Pro.
The company reported second-quarter earnings per share of $1.05, beating a Street estimate of 93 cents per share.
The company ended the quarter with 204,100 Enterprise customers, up 18% year-over-year.
Zoom saw the number of customers (3,116) who represent $100,000 in revenue on a trailing 12-month basis increase 37% year-over-year.
“In Q2, we continued to gain traction as the platform of choice for enterprises looking to deliver flexible, productive solutions for collaboration and customer engagement,” Zoom founder and CEO Eric S. Yuan said.
The company highlighted the momentum seen with Enterprise customers in the second quarter.
“In Q2, we delivered our fifth straight quarter with revenue of over one billion dollars. While we saw continued momentum with our Enterprise customers and our non-GAAP operating income came in meaningfully higher than our outlook, our revenue was impacted by the strengthening of the U.S. dollar, performance of the online business, and to a lesser extent sales weighted to the backend of the quarter,” Zoom CFO Kelly Steckelberg said.
Related Link: Zoom Video Stock Is Trading Lower, What's Going On?
What’s Next: The company is guiding for third-quarter revenue to come in a range of $1.095 billion to $1.1 billion, below a Street estimate of $1.15 billion, according to Benzinga Pro.
For the full fiscal year, the company sees revenue hitting a range of $4.385 billion to $4.395 billion, compared to a Street estimate of $4.54 billion.
“We are now expecting to deliver FY23 revenue in the range of $4.385 billion to $4.395 billion. We remain focused on operational discipline, and continue to expect non-GAAP operating margin of approximately 33%,” Steckelberg said.
Full year non-GAAP earnings per share are expected to come in a range of $3.66 to $3.69.
ZM Price Action: Zoom shares were down 7.3% at $90.30 in after-hours trading Monday.
Photo courtesy of Zoom.
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