Zoom beats Q3 expectations on AI offerings

Zoom Video Communications Inc (NASDAQ: ZM) just reported market-beating results for its fiscal third quarter. Its shares are up slightly in extended hours.

Zoom stock up on raised guidance

Investors look content also because the management raised its guidance for fiscal 2024 as well.  

Zoom now forecasts $4.93 to $4.95 of adjusted per-share earnings on up to $4.511 billion in sales this year. Eric Yuan – its Chief Executive said today in a press release:

Last week, Matthew Harrigan – a Benchmark Research analyst agreed that Zoom stock was undervalued but said it was unlikely to gain traction until revenue growth picks up again.  

Notable figures in Zoom Q3 earnings release

• Earned $141.2 million versus the year-ago $48.4 million
• Per-share earnings also jumped from 16 cents to 45 cents
• Adjusted EPS printed at $1.29 as per the press release
• Revenue went up 3.2% year-over-year to $1.136 billion
• Consensus was $1.09 a share on $1.12 billion in revenue
• Ended Q3 with 219,700 business customers – up 5.0%

On Monday, Zoom Video Communications reported a 13.5% annualised growth in the number of customers who contributed over $100,000 in revenue in the trailing twelve months. Its Chief Executive also said today: