Zoom (ZM) earnings Q4 2023

Zoom shares climbed almost 7% in prolonged trading on Monday after the video chat company reported fiscal fourth-quarter results that exceeded analysts’ estimates and offered optimistic earnings guidance for the 12 months.

Here’s how the corporate did:

• Earnings: $1.22 per share, adjusted, vs. 81 cents as expected by analysts, based on Refinitiv.
• Revenue: $1.12 billion, vs. $1.10 billion as expected by analysts, based on Refinitiv.

Zoom’s revenue increased 4% 12 months over 12 months within the quarter, which ended on Jan. 31, based on a statement. That is a dramatic slowdown from the quadrupling of revenue that Zoom enjoyed in 2020 and 2021, when consumers and businesses flocked to the video service in the course of the Covid pandemic.

The corporate had its first net loss since 2018 within the quarter, losing $104 million compared with net income of about $491 million within the year-ago period.

Growth will proceed to slow this 12 months. Zoom sees between $4.435 billion to $4.455 billion in revenue, implying 1.1% growth, while analysts were expecting sales of $4.6 billion. The corporate said adjusted earnings per share shall be between $4.11 and $4.18, topping the $3.66 average estimate.

For the fiscal first quarter, adjusted earnings shall be 96 cents to 98 cents per share on revenue of $1.080 billion to $1.085 billion. Analysts surveyed by Refinitiv had expected 84 cents in adjusted earnings per share and $1.11 billion in revenue.

Excluding the after-hours move, Zoom’s stock is up 8% for the 12 months, while the S&P 500 has gained 3% over the identical period.

In the course of the fiscal fourth quarter, Zoom said it will introduce email and calendar services, together with a virtual agent chatbot for handling customer support inquiries.

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

That is breaking news. Please check back for updates.

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