Zoom (ZM) Q2 2022 profits

Zoom (ZM) Q2 2022 profits

Zoom shares fell as much as 10% in extended trading on Monday after the video calling software maker reported second-quarter tax results that beat analysts’ expectations but showed slower growth than the previous quarter.

Here’s how the company did it:

  • Earnings: That’s 1.36 cents per share, adjusted, compared to $ 1.16 per share expected by analysts, according to Refinitiv.
  • Returned: According to Refinitiv, $ 1.02 billion, compared to $ 991.0 million expected by analysts.

According to a statement, revenue increased 54% year-over-year for the quarter ended July 31. Revenue increased 191% in the previous quarter. In the next quarter, Zoom is driving growth of 31%.

During the quarter, Zoom announced plans to acquire cloud-based contact center software provider Five9 for $ 14.7 billion in shares. The deal comes after Zoom gained millions of new users after the coronavirus emerged, and companies rushed to allow online meetings, increasing Zoom’s stock.

Also during the quarter, Zoom announced the availability of Zoom Events, which gives organizations the ability to host premium online meetings. And Zoom said it invested in event software maker Cvent as Cvent sought to go public through a merger with a specialist acquisition company.

As for the forecast for the next quarter, Zoom looked for $ 1.07 to $ 1.08 in adjusted earnings per share of $ 1.015 billion to $ 1.020 billion in revenue. Analysts polled by Refinitiv expected adjusted earnings per share of $ 1.09 and revenue of $ 1.01 billion.

For the full year, Zoom said it expected adjusted earnings of $ 4.75 to $ 4.79 per share and $ 4.005 million to $ 4.015 million in revenue – it said 3, Adjusted EPS of $ 98 from its final estimate of $ 4.56 to $ 4.61. There is an increase in revenue to $ 3.99 billion. It’s also ahead of analyst consensus estimates of $ 4.67 in adjusted earnings per share and $ 4.01 billion in revenue.

The company increased its forecast for the year as the number of coronavirus cases increased, including the delta variant of Covid, and some companies have delayed plans to reopen their offices.

Excluding price changes outside of office hours, the Zoom stock is up around 3% since early 2021, behind the S&P 500, which is up around 21% over the same period.

Executives will discuss the results with analysts on a Zoom call starting at 5 p.m. ET.

This is last minute news. Please check for updates.

To concern: Trading Nation: Zoom to release results on Monday – pandemic could continue to hit two traders

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