Zoom Video Communications(NASDAQ:ZM) stock is taking a beating on Tuesday following the release of the company’s earnings report for the second quarter of fiscal 2022.
Let’s dive into that earnings report below to see what has ZM stock falling today.
- The biggest problem facing Zoom Video this morning is its guidance for the upcoming quarter.
- That begins with an outlook for Q3 that includes adjusted earnings per share of $1.07 to $1.08.
- This would have it missing Wall Street’s estimate of $1.09 for the quarter.
- There’s also the fact that Zoom Video is seeing slower growth now that lockdowns are coming to an end.
- That’s a result of schools and businesses using the company’s services less and less to hold virtual meetings.
- These are pulling down an otherwise solid earnings report for the company.
- Its adjusted earnings per share for the current quarter was $1.36, which beat out Wall Street’s estimate of $1.16.
- Revenue of $1.02 billion was also better than the $990.96 million that analysts were expecting.
Eric Yuan, founder and CEO of Zoom Video, said the following in the earnings report affecting ZM stock today.
“In Q2, we achieved our first billion dollar revenue quarter while delivering strong profitability and cash flow. Q2 also marked several milestones on our expansion beyond the UC platform. We launched Zoom Apps, bringing over 50 apps directly into the Zoom experience, and Zoom Events, an all-in-one digital events service.”
It’s also worth pointing out that ZM stock is seeing heavy trading alongside this news. As of this writing, more than 15 million shares of the stock have changed hands. That’s a significant increase over its daily average trading volume of about 3.2 million shares.