Shares of Zoom fell 7.8% in afternoon trading after the company issued weaker-than-expected third-quarter profit guidance, overshadowing its second-quarter earnings beat. The video communications platform reported second-quarter revenue of $1.28 billion, up 4.9% year-over-year, slightly above analysts' expectations of $1.27 billion, and adjusted earnings per share of $1.55, topping estimates of $1.48. However, the company projected third-quarter adjusted EPS between $1.46 and $1.48, below the $1.50 consensus, while raising its full-year adjusted EPS guidance by 2% to $6.10 at the midpoint and lifting its full-year revenue outlook to $5.09 billion. Margin pressures also emerged, with GAAP operating margin declining to 24.6% from 26.4% a year earlier and free cash flow margin dipping sequentially to 37%.
Zoom Video Communications IncWeak Q3 profit guidance overshadowed Q2 earnings beat, causing shares to fall 7.8%.
Zoom Corp.