Earnings Results: Zoom Video cuts earnings and revenue outlook for the year, stock falls

by | Aug 22, 2022 | Stock Market

Zoom Video Communications Inc. executives trimmed their annual outlook Monday afternoon, sending shares lower in extended trading. Zoom 
posted fiscal second-quarter net income of $45.7 million, or 15 cents a share, on revenue of $1.1 billion, up from $1.02 billion a year ago. After adjusting for stock compensation and other effects, Zoom reported earnings of $1.05 a share, down from $1.36 a share last year. Analysts surveyed by FactSet had expected adjusted net income of 94 cents a share on revenue of $1.12 billion.

The better-than-expected earnings were undercut, however, by a chopped forecast for the full year. Zoom executives said they now expect full-year adjusted earnings of $3.66 to $3.69 a share on revenue of roughly $4.39 billion, down from $3.70 to $3.77 a share on sales of $4.53 billion to $4.55 billion. For the third quarter, they expect 82 to 83 cents a share on revenue of about $1.1 billion, while analysts on average had been projecting 92 cents a share on sales of $1.15 billion, according to FactSet. Zoom Chief Financial Officer Kelly Steckelberg blamed a stronger U.S. dollar — a problem many global tech companies have called out in recent earnings reports — but also a decline in “the online business,” or the more casual Zoom user. “While we saw continued momentum with our Enterprise customers, and our non-GAAP operating income came in meaningfully higher than our outlo …

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