By
Chimamanda U. Martha
February 13th, 2024
Looking forward, the software company expects its full-year 2023 revenue to fall between $4.385 billion and $4.395 billion.
Software company Zoom Video Communications (NASDAQ: ZM) has released its fiscal Q2 2023 earnings, showing a $45.7 million profit. The company said adjusted earnings per share came in at $1.05, surpassing analysts’ estimation of 94 cents per share. However, Zoom reported that its revenue for the fiscal Q2 2023, which ended July 31st, missed Wall Street’s forecast. Revenue for the quarter was $1,099.5 million. Although the revenue represents an 8% jump year-over-year, the figure is a 12% loss compared to the previous quarter. As the company raised expenses on marketing and sales, its net income dropped from $316.9 million in fiscal Q2 2022 to $45.7 million in the last quarter.
Zoom Releases Fiscal Q2 2023 Financial Results
Zoom funder and CEO Eric S. Yuan commented on the fiscal Q2 2023 financial performance. Yuan said the software company was successful during the period as it remains a preference to many. He added that consumers continue to demand” flexible, productive solutions for collaboration, and customer engagement.” According to him, many businesses choose Zoom because of its innovation and enhanced architecture. Speaking further, Yuan referred to the new Zoom Contact Center and Zoom IQ for Sales products. He said the functionalities attracted significant wins at their early stage. The CEO also boasted of Zoom Phone’s milestone results. Notably, Zoom Phone attained a record number of licenses sold in the fiscal Q2 2023. The VoIP phone system also reached about 4 million seats, a 100% spike YoY.
In addition, the Chief Financial Officer, Kelly Steckelberg, also had something to say. He explained:
“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 US dollar, performance of the online business, and to a lesser extent sales weighted to the backend of the quarter.”
Zoom’s Q3 Guidance
Looking forward, the software company expects its full-year 2023 revenue to fall between $4.385 billion and $4.395 billion. Also, Zoom is looking forward to revenue coming in at the range of $1.095 billion and $1.100 billion in the current quarter. That is, its guidance for adjusted fiscal Q2 earnings is 82 cents per share to 83 cents per share. On the other hand, analysts were looking for 91 cents in adjusted earnings per share on $1.15 billion in revenue. In reaction to the fiscal Q3 guidance, Zoom declined as much as 9% in after-hours trading.
At press time, ZM is down 8.30% to $89.35 in after-hours trading. Except for a 9.08% gain in the last three months, the company has constantly been seeing losses. Zoom stock plunged 71.45% over the past year and fell over 47% since January. In addition, the company has dropped 8.16% over the past month and 13.95% in the last five days.