On August 26, Zoom declined 5.21% in regular trading, trading around $97.4/share, with turnover of approximately $70 million. The stock came under pressure after the company issued a disappointing third-quarter outlook despite delivering a solid second-quarter earnings beat.
Zoom reported Q2 revenue of $1.28 billion and adjusted EPS of $1.55, surpassing analyst estimates of $1.27 billion and $1.48, respectively. However, the Q3 guidance weighed on sentiment: the company projected non-GAAP EPS of $1.46 to $1.48, below the consensus estimate of $1.50, and Q3 revenue of $1.275 billion to $1.28 billion, also slightly below expectations. Management cited intense market competition as continuing to pressure profitability despite ongoing AI product expansion.
On the positive side, Zoom raised full-year guidance to EPS of $6.08-$6.12 on revenue of $5.085-$5.095 billion, above prior outlook and analyst estimates. Enterprise customers contributing over $100,000 reached 4,625, exceeding consensus of 4,603. AI monetization accelerated with nine of the top ten Zoom CX deals including paid AI features. Nevertheless, the market chose to price near-term headwinds over longer-term positives.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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