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Zoom Video Q4 results top estimates; analysts say investors were too bearish going into earnings
Zoom Video Q4 results top estimates; analysts say investors were too bearish going into earnings By Investing.com
Breaking News
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Stock Markets 15 minutes ago (Feb 28, 2023 05:46AM ET)
By Yasin Ebrahim and Senad Karaahmetovic
Investing.com — Zoom Video Communications (NASDAQ:ZM) reported fourth-quarter results Monday that beat Wall Street estimates on both the top and bottom lines as new enterprise customer wins bolstered performance.
Zoom Video Communications stock is trading over 6% higher in pre-open trading Tuesday.
The company reported EPS of $1.22 on revenue of $1.12 billion, beating estimates for EPS of $0.81 on revenue of $1.1B.
Enterprise customers were up 12% to about 213,000 year-over-year.
Customers contributing more than $100,000 in trailing 12-month revenue were up 27% to 3,471 from the same quarter last fiscal year.
Looking ahead, the company guided fiscal first-quarter adjusted EPS between $0.96 and $0.98, above consensus of $0.85. Revenue was expected to be in a range of $1.080B to $1.085B, below consensus of $1.11B.
For the full-year 2024, the company guided adjusted EPS between $4.11 and $4.18 on revenue in a range of $4.435B and $4.455B.
Goldman Sachs analysts said the results were “solid.” While they reiterated a Neutral rating on Zoom stock, they lowered the price target from $92 to $85 per share.
“While we view the guide as increasingly de-risked, we would prefer to see revenue re-acceleration via Online stabilization and an improving Enterprise mix (via Phone/Contact Center) before becoming more constructive,” analysts said in a client note.
Morgan Stanley analysts added that Zoom delivered better-than-feared results.
“As previewed, investors had leaned too bearish into the print, so even as company reduced top line outlook, it was less than investors expected,” the analysts wrote.
Zoom Video Q4 results top estimates; analysts say investors were too bearish going into earnings
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