Zoom reports Q2 results – the stock dips

Zoom Video Communications Inc. (ZM) reported its latest financial results after the market close on Wall Street on Monday.

The US communications technology company reported revenue of $1.10 billion for the second quarter (up by 8% year-over-year), falling short of $1.117 billion expected.

Earnings per share reported at $1.05 per share vs. $0.94 per share estimate.

”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,” Founder and CEO of Zoom, Eric S. Yuan said in a statement following the results.

”Businesses are drawn to the Zoom platform because of our innovation and modern architecture. Our recently launched Zoom Contact Center and Zoom IQ for Sales products saw some great early wins while Zoom Phone delivered milestone results, hitting a record number of licenses sold in the quarter and reaching nearly 4 million seats, up more than 100% year over year,” Yuan added.

”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,” said Kelly Steckelberg, CFO of the US company.

”Consequently, 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 looked ahead.

Zoom Video Communications Inc. (ZM) chart

The stock was down by 2.07% at the end of Monday at $97.42 a share. Shares were down by around 8% in the after-hours trading.

Here is how the stock has performed in the past year:

• 1 month -8.60%
• 3 months +8.56%
• Year-to-date -47.27%
• 1 year -71.59%

Zoom price targets

• Citigroup $91
• Bernstein $122
• Piper Sandler $115
• Goldman Sachs $142
• Stifel $120
• Benchmark $128
• Deutsche Bank $105

Zoom is the 603^rd largest company in the world with a market cap of $28.97 billion.

You can trade Zoom Video Communications Inc. (ZM) and many other stocks from the NYSE, NASDAQ, HKEX and the ASX with GO Markets as a Share CFD.

Sources: Zoom Video Communications Inc., TradingView, MetaTrader 5, Benzinga, CompaniesMarketCap