Nandini Roy Choudhury, writer
Brief news
- Zoom shares experienced their greatest increase since November 2022 after disclosing better-than-expected second-quarter results and increasing full-year guidance.
- The stock closed at $68.04, up 13%, while the Nasdaq increased by 17% during the same period.
- Zoom’s revenue in the quarter increased by 2.1% to $1.16 billion, surpassing analyst estimates, and the company now anticipates revenue in the range of $4.63 billion to $4.64 billion for the entire fiscal year.
Detailed news
On Thursday, Zoom shares experienced their greatest increase since November 2022 as the video chat company disclosed second-quarter results that exceeded expectations and increased its full-year guidance.
The stock closed at $68.04, up 13%. The Nasdaq has increased by 17% during the same period, while shares are still down 5.4% for the year.
LSEG reported that Zoom’s revenue in the quarter increased by 2.1% from the previous year to $1.16 billion, surpassing the average analyst estimate of $1.15 billion. The adjusted earnings per share were $1.39, surpassing the average estimate of $1.21.
Zoom now anticipates revenue in the range of $4.63 billion to $4.64 billion for the entire fiscal year. Zoom’s most recent guidance indicated that the anticipated range would peak at $4.62 billion.
The company has stabilized, reducing customer attrition and strengthening its contact center business, despite the fact that Zoom has encountered challenges in reaccelerating growth in the wake of the pandemic surge. During the call, Zoom’s CEO, Eric Yuan, announced that the company secured its largest contact center client to date in the second quarter.
Nevertheless, the shares have declined by nearly 90% from their peak in October 2020.
In the second quarter, net income increased from $182 million, or 59 cents per share, a year ago, to $219 million, or 70 cents per share.
In a separate announcement, Zoom announced that Chief Financial Officer Kelly Steckelberg will be departing the organization following the report of third-quarter results. Yuan disclosed that Zoom has engaged an executive search firm to identify a successor to Steckelberg, who joined the organization in 2017.
Source : CNBC News
