By Sam Boughedda
Zoom Video Communications Inc (NASDAQ:ZM) shares have fallen in after-hours trading Monday following its third-quarter earnings release, which saw it top analyst earnings expectations.
The more than 5% decline adds to Zoom's 56% year-to-date decline, as the company's shares have struggled since the end of pandemic restrictions as people returned to offices.
The video communications firm posted earnings of $1.07 per share on revenue of $1.1 billion, beating analyst profit expectations of $0.83 per share on revenue of $1.09B.
The company's revenue rose 5% year-over-year. When adjusting for foreign currency impact, revenue increased 7% year-over-year. Zoom's enterprise revenue came in at $614.3 million, up 20% YoY, while online revenue was $487.6 million, down 9% year over year.
Enterprise customers rose 14% to 209,300 during the period, with 3,286 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 31% YoY.
"Our customers are increasingly looking to Zoom to help them enable flexible work environments and empower authentic connections and collaboration. Proactively addressing these needs with Zoom's expanding platform continues to be our focus in this dynamic environment," said Zoom Founder and Chief Executive Eric S. Yuan.
"In Q3, we drove revenue above guidance with continued momentum in Enterprise. In addition, our non-GAAP operating income came in meaningfully higher than our outlook, setting us up to finish the year with full-year revenue growth, strong GAAP and non-GAAP profitability, and free cash flow that we expect to be at the high end of our range of $1 billion to $1.15 billion. "
Looking ahead, Zoom sees fourth-quarter fiscal 2023 revenue between $1.095B and $1.105B, with adjusted EPS expected to be between $0.75 and $0.78.
For the full-year fiscal 2023, the company sees from $4.37B to $4.38B, with adjusted EPS expected to be between $3.91 and $3.94.