Zoom (ZM) clocked a key revenue beat and raised guidance for the year in its second quarter earnings, reported Monday after the bell.
Zoom's revenue for Q2 was $1.14 billion, slightly beating estimates for $1.11 billion. The company also raised its revenue forecast for 2024, saying it now expects revenue for the full year to come in at $4.49 billion-$4.5 billion. That's up from the previous forecast of $4.47 billion-4.49 billion, beating estimates for $4.48 billion.
The videoconferencing company came into this earnings cycle looking to capitalize on AI headwinds. Zoom has been looking for a boost since its pandemic boom cycled into a bust.
Zoom stock climbed by more than 6% after hours. Shares of the company came into this earnings cycle essentially flat year to date.
The earnings rundown
Here is what Zoom reported for Q2 versus estimates, according to Bloomberg data.
Revenue: $1.14 billion actual versus $1.11 billion estimated
Adjusted EPS: $1.34 actual versus $1.05 estimated
Free Cash Flow: $289.4 million versus $258.6 million estimated
Number of Enterprise Customers: 218,000 actual versus 219,350 estimated
Q3 Revenue Forecast: $1.12 billion actual versus $1.12 billion estimated
What analysts were saying pre-earnings:
"ZM shares have underperformed software peers YTD and we retain our cautious view heading into FQ2 results. Although Online is showing signs of stabilization, we worry about incremental weakness in the Enterprise segment amidst a peak multi-year renewal cycle, given competition/ consolidation headwinds and GTM changes. ... We stay sell rated as we believe margins are peaking and we don’t see an easy path for growth recovery." -Citi's Tyler Radke
This is breaking news. Please check back for updates.
Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.
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