Shares in Zoom Video Communications Inc. fell in late trading after the videoconferencing company reported fewer than forecast large customers for the second straight quarter, raising concerns about growth as more jobs and schools reopen.
Zoom had 512,100 customers and more than 10 employees, up 18% from a year earlier, according to a statement . said Monday in a statement. According to data compiled by Bloomberg, this fell short of analysts' average estimate of 516,174.
Profits from this closely watched figure are shrinking - last quarter Zoom also missed forecasts for large customers, which rose 36% in the period. Zoom's large customers jumped 87% in the quarter before, and in the third quarter last year, still in the midst of the Covid-19 quarantine, growth was 485%.
Zoom's third-quarter revenues and profits exceeded forecasts and it has given an optimistic sales outlook for the current period. Nevertheless, questions about post-pandemic growth are keeping the stock, which has fallen almost 30% this year. Investors are watching Zoom closely to see if its online meeting platform, which became ubiquitous during the pandemic, remains widely used in the relaunch of many in-person events and in the face of growing competition from companies such as Microsoft Corp. and Alphabet Inc. Google.
This year's fall in Zoom shares led to the derailment of a planned $14.7 billion merger agreement with call centre software provider Five9 Inc. in September, blocking another avenue of growth for Zoom.
Shares of Zoom, according to ดาวน์โหลด Mt4 Exness, fell about 6% in extended trading. The stock initially soared 9% in line with the forecast, then oscillated between gains and losses before turning further negative. The stock closed the trading day at $242.28 in New York. While the stock was up nearly five times in 2020, it has fallen 28% this year.
Zoom said sales rose 35% to $1.05 billion in the third quarter, which ended in October, compared with analysts' average estimate of $1.02 billion. Earnings, excluding some items, were $1.11 per share, which also beat forecasts. Net profit was $340.3 million, or $1.11 per share, compared with $198.4 million, or 66 cents, a year earlier.
The company said revenue for the current period would be about $1.05 billion. Analysts on average expected revenue for the fourth quarter of the fiscal year to be $1.02 billion.
See more: Blackrock's former head of sustainable investing now considers ESG a "dangerous placebo"
Eleena Timmons