ZOOM Video Communications gave a sales forecast for the current quarter that beat analysts’ estimates as the company expands its suite of products.
Revenue will be US$1.16 billion to US$1.17 billion in the period ending in October, the company said on Wednesday (Aug 21). Profit, excluding some items, will be about US$1.30 per share. Analysts, on average, projected adjusted earnings of US$1.24 per share on sales of US$1.16 billion, according to data compiled by Bloomberg. The company also raised its fiscal year sales and profit forecasts.
Separately, Zoom announced that chief financial officer Kelly Steckelberg will step down from her role at the end of the current fiscal quarter on Oct 31. The company said Steckelberg’s departure is not a result of any disagreement with Zoom and a search has begun for a successor.
The company, known for its signature videoconferencing software, is focused on offering more tools for business customers, including phone systems, contact centres and an artificial intelligence assistant. Zoom said it had 191,600 enterprise customers, including 3,933 contributing more than US$100,000 in trailing 12-month revenue at the end of the quarter. Enterprise revenue increased 3.5 per cent to US$682.8 million in the fiscal second quarter.
The shares rose about 3 per cent in extended trading after closing at US$60.23 in New York. The stock has dropped 16 this year and hit a record low earlier this month.
Total sales increased 2.1 per cent to US$1.16 billion in the period ended Jul 31. Analysts, on average, estimated US$1.15 billion. Profit, excluding some items, was US$1.39 a share in the period ended Jul 31, compared with the average projection of US$1.22.
An ongoing loss of consumers and small businesses from Zoom has concerned investors, particularly since these customers are higher-profit than corporate clients. Churn in this segment was 2.9 per cent in the quarter, compared with 3.2 per cent in the previous period. Sales in the segment were US$479.7 million, little changed from a year earlier.
Zoom’s video product has been host to massive political events in recent weeks, such as with groups organising fundraising and support for Vice-President Kamala Harris. The company on Monday launched a new single-use webinar offering that can support as many as one million attendees. BLOOMBERG
