On Monday, Zoom Video Communications shares plummeted to 12% in extended trading as the second-quarter fiscal revenue reflected a gradual growth compared to the previous quarter.
Zoom is one of the top gainers in the pandemic as it reached millions of users who work and study remotely.
The Q2 fiscal report exceeded analysts’ expectations as the revenue growth slowed down due to modest economic recovery and reopening of businesses and schools.
The company recorded earnings of $1.36 per share, higher than the expected $1.16.
Consequently, Analysts eyed a 31% increase for the next quarter.
Gross margin soared to 74.4% from 72.3% in the last quarter as the accessibility of new data center capacity profited the company’s gross margin in the quarter.
In the second quarter, the video conferencing company introduced the availability of Zoom Events. The feature allows organizations the ability to hold premium online meetings.
Zoom also invested in Cvent, an event software maker that recently pursued to go public through a merger with a special purpose procurement company.
In addition, Zoom broadcasted its plans to acquire the software provider Five9 for $14.7 billion in stock.
The American communications company has a current market capitalization of $103.25 billion.
Zoom announced the deal after it extended millions of new users as online meetings emerged caused by the rapid surge of coronavirus.
The company called for $1.07 to $1.08 in adjusted earnings per share on $1.015 billion to $1.020 billion in revenue concerning the third quarter’s guidance.
Meanwhile, Analysts forecasted adjusted earnings per share of $1.09 and revenue of $1.01 billion.
Zoom confidently amplified its forecast for this year as the Delta variant causes a spike in cases, and some companies deferred their plans to reopen offices.
Zoom Gained $1B in Quarterly Revenue
Zoom posted a new record as its second-quarter revenue exceeded $1 billion due to solid demand for videoconferencing services at the onset of the pandemic.
The video conference company revenue inched up from the forecasted $991.0 million.
The posted revenue jumped 54% year over year as the first-quarter revenue rose to 191%.
In August, the Zoom Phone, a telephone alternative for offices, sold 2 million seats as it made $100,000 in revenue in the past 12 months.
Meanwhile, the firm’s rival Microsoft Corp. edged up 1.29% in its most recent earnings report. The utilization of Teams attained record levels of 250 million monthly active users. It also reached 80 million monthly active Teams Phones customers that exceeded one billion calls in one month.