Zoom CEO Eric Yuan speaks at the Dropbox Work In Progress conference in San Francisco on September 25, 2019.
Matt Winkelmeier | Getty Images for Dropbox
skyrocketing Shares of the video chat company posted their biggest gain since November 2022 on Thursday after the video chat company reported better-than-expected second-quarter results and raised full-year guidance.
The stock rose 13% to close at $68.04. The stock is still down 5.4% this year, while the Nasdaq has gained 17% in that period.
skyrocketing explain LSEG data showed that revenue in the quarter increased 2.1% from the same period last year to $1.16 billion, exceeding analysts’ average estimate of $1.15 billion. Adjusted earnings per share were $1.39, beating the average estimate of $1.21.
Zoom currently expects revenue for the full fiscal year to be $4.63 billion to $4.64 billion. The last time Zoom provided guidance, the company said the high end of its expected range was $4.62 billion.
While Zoom has struggled to reaccelerate growth after the economic slowdown caused by the surge in the epidemic, the company has stabilized, reduced customer churn and strengthened its contact center business. Zoom gained its largest contact center customer ever in the second quarter, CEO Eric Yuan said on a conference call.
Still, the stock is down nearly 90% from its October 2020 high.
Second-quarter net income increased to $219 million (or 70 cents per share) from $182 million (or 59 cents per share) in the same period last year.
Separately, Zoom said Chief Financial Officer Kelly Steckelberg will leave the company after reporting third-quarter results. Yuan Zheng said the company has hired a headhunting firm to find a replacement for Steckelberg, who joined Zoom in 2017.
