Zoom sees more sales from some of its biggest customers, and stock rises

By Claudia Assis

Online business also steady, company says

Shares of Zoom Video Communications Inc. rose 3% in the extended session Wednesday after the communications technology company reported better-than-expected quarterly earnings, saying it attracted more revenue from its biggest customers and its online business kept up.

Zoom (ZM) "saw strength" in large accounts and "resilience" in its online business, founder and Chief Executive Eric S. Yuan said in a statement. The company also provided guidance that was ahead of Wall Street's expectations.

At the end of fiscal second quarter, Zoom had nearly 4,000 customers contributing more than $100,000 in revenue, up about 7% from the same quarter last fiscal year, the company said. It also saw less customer churn.

Zoom earned $219 million, or 70 cents a share, in the fiscal second quarter, compared with $182 million, or 59 cents a share, in the second quarter of the last fiscal year.

Adjusted for one-time items, Zoom earned $1.39 a share, ahead of the FactSet consensus of $1.21 a share.

Revenue rose 2% to $1.16 billion, the company said. That was better than the $1.15 billion that analysts polled by FactSet had expected.

Zoom also guided for fiscal third-quarter revenue between $1.160 billion and $1.165 billion, and an adjusted EPS between $1.29 and $1.31. That compares with FactSet estimates of revenue of $1.16 billion and adjusted EPS of $1.23.

For fiscal 2025, Zoom called for revenue between $4.63 billion and $4.640 billion, and adjusted EPS between $5.29 and $5.32. The company's guidance for the year was also ahead of FactSet expectations, which call for fiscal 2025 revenue of $4.62 billion and adjusted EPS of $5.05.

-Claudia Assis

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08-21-24 2015ET

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