Zoom surpasses expectations as it calls for another quarter of single-digit growth

Core Insights - Zoom reported strong fiscal third-quarter results, with earnings per share and revenue exceeding expectations, but shares fell about 1% in after-hours trading [1][2]. Financial Performance - Adjusted earnings per share were $1.38, surpassing the expected $1.31, while revenue reached $1.18 billion, above the anticipated $1.16 billion [2]. - Year-over-year revenue growth was approximately 4%, marking a significant slowdown compared to the tripling of business size during the pandemic in 2020 and 2021 [2]. - Net income increased to $207.1 million, or 66 cents per share, compared to $141.2 million, or 45 cents per share, in the same quarter the previous year [3]. Customer Metrics - The company reported 192,400 enterprise customers, an increase of 800 from the previous quarter [4]. Future Guidance - For the fiscal fourth quarter, Zoom expects adjusted earnings per share between $1.29 and $1.30, with revenue projected between $1.175 billion and $1.180 billion, aligning with analyst expectations [4]. - For the 2025 fiscal year, Zoom raised its guidance to adjusted earnings per share of $5.41 to $5.43 and revenue of $4.656 billion to $4.661 billion, indicating about 3% growth [5]. Product Developments - In the first half of 2025, Zoom plans to release a premium Custom AI Companion that integrates with corporate services like ServiceNow and Workday, and has introduced single-use webinar options for up to 1 million attendees [6]. Stock Performance - As of the latest close, Zoom's stock has risen approximately 24% this year, compared to a 25% gain in the S&P 500 index [7].