On Monday, video communication giant Zoom reported its earnings during fiscal Q2 2022, leaving analysts surprised by beating their expectations on the top and bottom line. According to Bloomberg, Wall Street expected its revenue to be $990. However, revenue generated is close to $1.02 billion. Similarly, expected earnings per share was $1.16, but Zoom clocked in $1.36.
Soon after the announcement, the company’s stock plummeted by over 3%.
If there’s a company that remains the epitome of coronavirus growth stocks, it is Zoom. A platform for students and employees all across the globe to stay connected for education and business purposes, Zoom played a significant role in making work from home happen successfully during the pandemic. It went on to earn the distinction of Yahoo Finance’s Company of the Year in 2020 for offering people across the world means to see their friends and family.
The pandemic saw Zoom’s user growth explode, with the number of customers with 10 or more employees increasing 458% from 66,300 in fiscal Q2 2020 to 370,200 during the company’s fiscal Q2 2021. However, the growth slowed in Q2 2022 to 36%.
The number of customers paying over $100,000 in the following 12 months continues to grow. It shot up 112% from 466 in fiscal Q2 2020 to 988 in fiscal Q2 2021.
But Zoom has officially reached to a point where its current performance is being compared to that last year, when many businesses were looking at building their video chat capabilities.
To offset that, in July, the company acquired cloud customer contact center Five9. This will allow Zoom to offer video customer service capabilities to all its customers and clients across the globe.