Zoom Reports Better than Expected Results for Fiscal Q2 2024, ZM Shares Up Nearly 4%

Zoom Reports Better than Expected Results for Fiscal Q2 2024, ZM Shares Up Nearly 4%

UTC by Steve Muchoki · 2 min read
Zoom Reports Better than Expected Results for Fiscal Q2 2024, ZM Shares Up Nearly 4%
Photo: Zoom

Zoom announced that its Q2 revenue came in at about $1.138 billion, up 3.6 percent YoY.

Zoom Video Communications Inc (NASDAQ: ZM) shares closed Monday trading at $67.27, up 1.48 percent from the day’s opening price. The ZM shares continued in gains during the after hours with about 3.79 percent, to trade around $69.82. The $19.72 billion valued company released its financial results for the second fiscal quarter that ended on July 31, 2023, which ostensibly beat analysts’ expectations. According to the announcement, Zoom reported adjusted earnings per share of about $1.34 for Q2, compared to approximately $1.05 expected by analysts surveyed by Refinitiv. Additionally, Zoom Video Communications reported a revenue of about $1.138 billion during the second quarter, whereas analysts surveyed by Refinitiv expected revenue of approximately $1.12 billion.

“…we continue to innovate and expand our platform to help bring value and enhanced productivity to our customers with new AI features like Zoom IQ Meeting Summary and Team Chat Compose, as well as Intelligent Director,” Eric S. Yuan, Zoom Founder, and CEO, noted.

Zoom Video Communications’ Financial Results in Q2 2024

During the second quarter, Zoom Video Communications reported an enterprise revenue of about $659.5 million, up 10.2 percent YoY, whereas its online revenue came in at $479.2 million, down 4.3 percent YoY. The company noted that its operating cash flow came in at about $336.0 million, up 30.6 percent YoY. The number of Zoom  Video Communications customers contributing more than $100k in trailing 12 months’ revenue was 3,672, up about 17.8 percent YoY.

During the second quarter, the company announced 218,100 enterprise customers, up 6.9 percent from the same quarter last fiscal year. Although the company’s overall growth significantly reduced compared to two years ago during the height of Covid 19 pandemic, the management raised its full-year forecast.

As for the third quarter, the company expects total revenue to come in between $1.115 billion and $1.120 billion. The Non-GAAP income from operations for the third quarter is expected to come in between $400 million and $405 million. As for the Non-GAAP diluted earnings per share, Zoom expects to report between $1.07 and $1.09 with approximately 309 million weighted average shares outstanding.

For the full fiscal year 2024, Zoom expects its total revenue to come in between $4.485 billion and $4.495 billion. The full fiscal year 2024 non-GAAP income from operations is expected to come in between $1.685 billion and $1.695 billion, whereas the non-GAAP diluted earnings per share is expected to be between $4.63 and $4.67.

Business News, News, Stocks, Wall Street
Related Articles