Zoom provides disappointing revenue forecast for first quarter and full year
Here’s how the company did:
Earnings: $1.29 per share, adjusted, vs. $1.06 per share as expected by analysts, according to Refinitiv.Revenue: $1.07 billion, vs. $1.05 billion as expected by analysts, according to Refinitiv.
Zoom’s revenue increased 21% from a year earlier in the period that ended on Jan. 31. That’s a deceleration from 35% growth in the prior quarter, according to a statement.
Net income rose 88% in the quarter to $490.5 million as gross margin widened to 76% from 74.2% in the prior period.
However, in the first quarter and for the full year Zoom is projecting revenue that’s below what analysts were expecting. Sales in the current quarter will be $1.07 billion to $1.075 billion, representing growth of about 12%. Analysts polled by Refinitiv had expected $1.1 billion in revenue.
For fiscal year, the company sees $4.53 billion to $4.55 billion in revenue, implying 10.7% growth. Analysts polled by Refinitiv had been looking for $4.71 billion in revenue.
Prior to the after-hours move, shares of Zoom were down almost 29% for the year, underperforming the S&P 500 index, which is down about 9% over the same period.
Executives will discuss the results with analysts on a Zoom call starting at 5 p.m. ET.
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