Video conferencing giant Zoom has released its third-quarter results and while the results regressed as a result of the slowing pandemic boom, the results surpassed the estimates of analysts.
The impressive results come amid the company’s warnings to investors of a slowdown in revenue which may last for some time, thanks to the beginning-to-fade-away pandemic. The company published earnings per share of $1.11, adjusted and surpassed the estimate of $1.09 per share, according to analysts from Refinitiv. The company recorded a revenue of $1.05 billion, beating the $1.02 billion forecast of Refinitiv analysts.
According to a statement released by the company, revenue surged 35 percent from the same period in the last year which ended on October 31st, slowing from 54 percent growth in the previous quarter. Net income, however, soared 71 percent to $340.3 million.
The company which experienced a boom in its operations thanks to the pandemic which pushed up the demand for its platform, reported its slowest growth since at least 2018, which is before it went public in 2019. The company’s platform still remains an important tool in the workplace. Although the demand by individual users continues to drop, Zoom Rooms software is growing thanks to continued adoption by organizations. The conference room strategy has become even more important than it was pre-pandemic”, Kelly Steckelberg, Zoom’s finance chief said. Zoom also revealed that over 2,500 customers are spending more than $100,000 a year, up 94% from the same period a year earlier.
During the third quarter, Zoom said it rescinded its decision to acquire Five9, a cloud contact centre software provider, for $14.7 billion. The company revealed that its own cloud contact centre software will be launched in 2022.
For the fiscal fourth quarter, Zoom forecast adjusted earnings of $1.06 to $1.07 per share on $1.051 billion to $1.053 billion in revenue, which implies 19% growth. Analysts polled by Refinitiv had expected $1.05 in adjusted earnings per share and $1.02 billion in revenue.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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