Zoom posted another strong earnings report on Monday, thanks to a growing customer base. The company also offered healthy guidance for the next three months. However, this was not enough to satisfy investors, as the stock fell more than 6% in extended trading.
Before costs like stock compensation, the company reported a profit of $1.11 per share on revenue of $1.051 billion. That number marks a 35% increase from last year. Analyst estimates had modelled a profit of $1.09 per share on $1.02 billion in sales. Eric Yuan, the founder and Chief Executive of the company, said that through innovation and dedication, Zoom will continue to ‘deliver happiness to our customer.’
Growth during the pandemic
Yuan added that the company is on track to become an indispensable platform for enterprises, teams and individuals to connect, collaborate and build in a hybrid world of work.
During the pandemic, Zoom rose to prominence as a teleconferencing and virtual meetings ground for people with work obligations to fulfil during the pandemic. As more people were ordered to work from home, Zoom stocks made significant gains in 2020.
Clear skies ahead
Even though growth has declined, the company has continued to add more enterprises to its client list, with 2,500 customers who spend more than $100,000 a year on its software. That is up 94% from the same time last year.
The overall customer base has grown too, with the company reporting that it now has 512,100 customers with more than ten employees using its software, an 18% increase from the same time last year. Zoom expects the coming year will see revenue of between $4.079 billion and $4.081 billion.