Zoom, a video communication software providerShares fell more than 10% in after-hours trading on Monday, as the company's latest results showed second-quarter earnings beat analysts' expectations, but growth slowed compared with the previous quarter.
Zoom's second-quarter adjusted earnings per share were $1.36 and the market expected $1.16, while revenue rose 54 per cent year-on-year to $1.02 billion and the market expected $991 million, down sharply from 191 per cent in the previous quarter, according to the results.
With regard to its guidance for the next quarter, Zoom expects adjusted earnings per share of $1.07-$1.08 on revenue of $1.015 billion-$1.02 billion, meaning revenue growth of just 31 per cent. The market expects adjusted earnings per share of $1.09 on revenue of $1.01 billion.
Zoom also raised its guidance for the full fiscal year, forecasting adjusted earnings per share of $4.75 to $4.79 on revenue of $4.005 billion to $4.01 billion, both above analysts' expectations. The company had expected adjusted earnings of $4.56 to $4.61 on revenue of $39.8 to $3.99 billion.
Zoom shares are up about 3% since the start of the year, lagging behind the nearly 21% rise in the s & p 500 over the same period.