Zoom shares slip after Q3 guidance midpoint below estimates

Zoom Communications Inc (NASDAQ: ZM ) reported financial results for the second quarter after the market close on Tuesday. Here’s what you need to know from the print. Zoom shares are under pressure. What’s driving ZM stock lower? Zoom Q2 Earnings Highlights Zoom reported revenue of $1.28 billion for the second quarter, beating the consensus estimate of $1.27 billion. The communications company posted second-quarter adjusted earnings of $1.55 per share, beating analyst estimates of $1.48 per share, according to Pro. Total revenue was up 4.9% on a year-over-year basis. Zoom said enterprise revenue increased 7.8% year-over-year to $787.5 million, and online revenue was up 0.6% year-over-year to $489.7 million. Online monthly average churn was 2.9% in the quarter. The company ended the quarter with 4,625 customers contributing more than $100,000 in trailing 12-month revenue, up 8.2% year-over-year. “Our AI-first Customer Experience portfolio continues to scale, delivering high-double-digit ARR expansion, driven in part by strong adoption of Zoom Virtual Agent, whose customer count increased 256% year over year,” said Eric Yuan, founder and CEO of Zoom. Net cash provided by operating activities was $494.8 million in the quarter and free cash flow came in at $472.4 million. Zoom exited the period with $7.2 billion in cash, cash equivalents and marketable securities, excluding restricted cash. Zoom expects third-quarter revenue to be in the range of $1.275 billion to $1.28 billion, versus estimates of $1.282 billion. The company anticipates third-quarter adjusted earnings of $1.46 to $1.48 per share versus estimates of $1.50 per share. Zoom also raised its full-year guidance. The company now expects full-year revenue of $5.085 billion to $5.095 billion, versus estimates of $5.09 billion. Zoom now sees full-year adjusted earnings of $6.08 to $6.12 per share versus estimates of $6.08 per share. Zoom’s management team will discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET. ZM Stock Falls After Earnings Zoom shares were down 2.92% in after-hours, trading at $97.97 at the time of publication on Tuesday, according to Pro. Read Also: Salesforce Q2 Preview: Stock Has Fallen After 5 of Last 8 Earnings Reports, Will This One Be Different? Image: Shutterstock.com