Zoom Q2 Profit Falls; Lowers FY23 Outlook; Stock Down 8%

(RTTNews) - Zoom Video Communications, Inc. (ZM) on Monday posted a drop in second-quarter earnings. With the company lowering its annual 2023 outlook, the stock is down 8 percent on Monday's after-hours trading.

The company posted net income of $45.7 million or $0.15 per share in the second quarter, down from $316.9 million or $1.04 per share in the same period last year. Excluding items, income was $323.5 million or $1.05 per share in the period, lower than $415.1 million or $1.36 per share in the previous-year quarter. Quarterly revenues rose to $1.09 billion from $1.02 billion a year ago.

Looking ahead, the company expects third quarter revenues to be between $1.06 billion and $1.10 billion and adjusted EPS between $0.82 and $0.83.

For full year 2023, the company expects total revenue between $4.39 billion and $4.40 billion and adjusted EPS between $3.66 and $3.69. This is lower than the earlier forecast of revenues between $4.53 billion to $4.55 billion on revenues between $3.70 to $3.77.

On average, 28 analysts expect the company to post revenues of $4.54 billion during the year ahead.