Zoom (ZM) Share Price Drops on Disappointing Outlook
Zoom (NASDAQ: ZM) shares dropped 2% after-hours following the company’s reported disappointing guidance, while Q4 earnings results came in better than expected.
Quarterly EPS was $1.29, beating the Street estimate of $1.05. Revenue grew 21% year-over-year to $1.07 billion, slightly above the Street estimate of $1.05 billion.
The company ended the year with 2,725 customers (up 66% year-over-year) with over $100,000 in trailing 12 months revenue and approximately 509,800 customers (up 9% year-over-year) with more than 10 employees.
The company’s Board of Directors authorized a stock repurchase program of up to $1.0 billion of the company’s Class A common stock.
The company expects Q1/23 EPS in the range of $0.86-$0.88, missing the consensus estimate of $1.05, and revenue in the range of $1.07-1.075 billion, compared to the consensus estimate of $1.1 billion.
For the full 2023-year, the company expects EPS in the range of $3.45-$3.51, compared to the consensus of $4.40, and revenue in the range of $4.53-4.55 billion, compared to the consensus of $4.71 billion.