Zoom (NASDAQ:ZM) shares scaled back Tuesday after the video-calling software provider announced fiscal second-quarter results that exceeded analysts’ expectations.
Earnings came in at $1.34 per share, adjusted, vs. $1.05 per share as expected by analysts, according to Refinitiv. Revenue proved $1.14 billion, vs. $1.12 billion as expected by analysts.
Zoom’s revenue grew 3.6% year over year in the quarter that ended on July 31, according to a statement. Net income jumped to $182 million, or 59 cents per share, in the quarter, compared with $45.7 million, or 15 cents per share per share, in the fiscal second quarter one year ago.
Still, the company is moving at a much more sluggish pace than it was two years ago, when it said revenue multiplied almost by five after the arrival of Covid pushed companies and schools to sign up for premium accounts and keep their people collaborating remotely.
The company claimed around 218,100 enterprise customers at the end of July, up 1% from 215,900 as of April 30. Zoom defines enterprise clients as business units that Zoom’s direct sales teams, resellers or partners work with.
Zoom’s quarterly guidance came up just short. Executives called for $1.07 to $1.09 in adjusted earnings per share on $1.115 billion to $1.120 billion in revenue in the fiscal third quarter. Analysts had expected $1.03 in adjusted earnings per share and $1.13 billion in revenue.
ZM shares fell $1.60, or 2.4%, to $65.67.