![]() Zoom Video Communications will be looking to display strength as it nears its next earnings release. This has lagged the Computer and Technology sector's loss of 0.91% and the S&P 500's gain of 2.19% in that time. Prior to today's trading, shares of the video-conferencing company had lost 12.99% over the past month. Meanwhile, the Dow gained 1.57%, and the Nasdaq, a tech-heavy index, lost 3.03%. ![]() This change lagged the S&P 500's daily gain of 1.96%. Zoom Video Communications (ZM) closed the most recent trading day at $61.29, moving -0.23% from the previous trading session. Follow her on Twitter at and on LinkedIn. ![]() Parker Lane, StifelĪllie Garfinkle is a Senior Tech Reporter at Yahoo Finance. We maintain our Hold rating and $75 target price on ZM shares." -J. During the call, management also highlighted its ongoing investment in AI-powered solutions, which we believe will take center stage at the company's Zoomtopia conference on October 3-4. Overall, Enterprise customer count continues to trend in a healthy direction (~7% y/y) while the Online business continues to see single-digit revenue declines on a y/y basis. Enterprise momentum drove the quarterly upside, with the company achieving two milestones (Zoom Phone reached $500mn of annualized revenue and Zoom Contact Center surpassed 500 customers during the quarter). "Zoom shares traded nearly 4% higher on Monday afternoon after the company delivered upside to 2Q targets and lifted its full-year outlook. Earlier this month, we took the additional step in stating that Zoom does not use customer content to train our AI models or third-party AI models." What analysts said post-earnings: We are privileged to have countless customers rely on us for their communications needs. "And, as we develop and deploy AI solutions, we strongly believe that technology should advance trust. "XD joins us at an optimal moment in our AI journey," Yuan said in his earnings call statement. He was previously in the same role for Azure AI at Microsoft. The company this summer also brought in a new chief technology officer, XD Huang, who came into the organization with distinct AI experience. "For the full year, we expect non-GAAP gross margin to be approximately 79.7%, as we make additional investments in new AI technologies," Yuan said in his prepared remarks to analysts. ![]() Zoom was expecting AI to boost its wins this year, especially when it comes to margins. (Jonathan Raa/NurPhoto via Getty Images) (NurPhoto via Getty Images) What else caught our attention: AI Zoom logo displayed on smartphone with Zoom screen in the background. "So while it was up over Q1, it was down over Q4, and that's because of summer and winter holidays."Īdditionally, CEO Eric Yuan defended Zoom's pricing power in an increasingly competitive environment that includes videoconferencing products from tech's biggest names, such as Microsoft ( MSFT) with its Teams service. "For the online churn metric, as a reminder, we expect Q2 and Q4 to be seasonally higher than Q1 and Q3," Zoom CFO Kelly Steckelberg told analysts on the company's earnings call. Though the company's overall forecast for the year came in higher than expected, the Q3 revenue guidance remained flat for a reason: Zoom is a seasonal business, execs argued. Q3 Revenue Forecast: $1.12 billion actual versus $1.12 billion estimated Number of Enterprise Customers: 218,000 actual versus 219,350 estimated Revenue: $1.14 billion actual versus $1.11 billion estimatedĪdjusted EPS: $1.34 actual versus $1.05 estimatedįree Cash Flow: $289.4 million versus $258.6 million estimated Here is what Zoom reported for Q2 versus estimates, according to Bloomberg data. ![]()
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