Zoom (ZM.US) stock managed to erase some of the premarket losses however is still trading 5.0% lower after the video-conferencing platform cut its annual sales outlook, expecting lower profits from its declining online business.
-
In Q3 earnings dropped 4% from a year earlier to an adjusted $1.07 per share, topping analysts estimates of $0.84 per share.
-
Revenue increased by 5% to $1.102 billion, below market estimates of $1.094 billion. Sales growth slowed for the seventh straight quarter as the company struggles to adjust to a post-COVID world.
Highlights of Zoom's earnings report. Source: alphastreet.com
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app-
"When the pandemic hit in (early 2020), Zoom’s super-easy-to-use solution saved the day, Zoom penetrated the video conferencing market with record speed and the company quickly ramped to a $4 billion revenue run rate," said JMP Securities analyst Patrick Walravens, who carries a 'market perform' rating on the stock.
-
"But today Zoom’s challenges include fending off competition from Microsoft Teams in the enterprise, identifying the right value proposition to stabilize its $2 billion Online business, and finding the next big growth driver to change the “commoditization” narrative and drive its second act," he added.
-
For the current quarter the company expects revenues in the region of $1.095 billion and $1.105 billion, slightly below Refinitiv projections, with a lower-than-expected tally of between $4.37 billion and $4.38 billion for the coming fiscal year.
Zoom (ZM.US) stock plunged nearly 90% from its pandemic high from October 2020, however downward move halted recently around $70.80 level, which managed to fend off bears also during today's session. As long as price sits above, upward impulse towards resistance at $82.60 may be launched. This level is marked with previous price reactions and 23.6% Fibonacci retracement of the last downward wave. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
