Zoom tops Q1 estimates, but disappoints on Q2 guidance

Zoom Video Communications (ZM) narrowly beat first-quarter revenue estimates — $11.4 billion against an expected $1.13 billion — while topping adjusted earnings expectations — $1.35 per share against an expected $1.19 per share.

Yahoo Finance’s Market Domination Overtime reviews Zoom’s disappointing enterprise customer count and second-quarter guidance.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan.

Video Transcript

Zoom reporting its 1st 1st quarter results here.

Uh that company coming out with earnings per share beating analyst estimates at a buck 35 a dollar 19 is what analysts were expecting on average revenue pretty much in line with estimates of $1.14 billion.

And Zoom of course, out with the forecast, its forecast for the second quarter adjusted earnings per share is below estimates.

It’s a range, but the top of that range is one 0.2.

Uh excuse me, a dollar 21 for earnings, a dollar 24 is what analysts had been anticipating here.

So that looks like a disappointment.

Also another big disappointment here.

First quarter enterprise customers 100 and 91,000.

The estimate was for nearly 224,000.

You know, Zoom as we know, made the pivot after the pandemic to try to really add enterprise customers, business customers a away away from its reliance on individuals because everybody signed up every, you know, you know, they had good market penetration.

There were fewer people post pandemic who were willing to pay for it.

They especially were focusing on um at one point large enterprise cu customers, but then they kind of shifted to also focus on small and mid size business.

But either way you slice that number looks like a pretty big disappointment.

Yes.

And I have another one along those lines, customers contributing more than $100,000 in trailing 12 month revenue.

That was 3883.

But the estimate was for over 100 or just about 100 higher, 80 higher, uh 3966.

So just the mix of earnings and how that breaks down, just not seeing those larger purchase or larger customers in right now.