Zoom Video Communications Inc. (NASDAQ: ZM) released its latest financial results for the third fiscal quarter after the market closed in the US on Monday.

Company overview

• Founded: April 21, 2011
• Headquarters: San Jose, California, United States
• Number of employees: 8,484 (January 2023)
• Industry: Tech
• Key people: Eric Yuan (Chairman & CEO), Kelly Steckelberg (CFO), Peter Gassner (Director)

The results

The US communications technology company reported revenue that beat Wall Street estimates at $1.136 billion (up by 3.2% year-over-year) vs. $1.119 billion expected.

Earnings per share also topped estimates at $1.29 per share (up by 20.56% year-over-year) vs. $1.086 per share estimate.

The company also raised its full-year revenue forecast: ”Our strong performance across a number of metrics has enabled us to increase our full year outlook for revenue and non-GAAP profitability, as well as for free cash flow, which we now expect to be in the range of $1.34 billion to $1.35 billion, up approximately 13% year over year.”

CEO commentary

“In Q3, revenue came in ahead of guidance as we bolstered Zoom’s all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion and continued to evolve our customer and employee engagement solutions. We are also pleased with our Online business where we drove higher retention and saw usage of our new AI capabilities, enhancing the value of our platform,” Eric Yuan, CEO of Zoom said in a statement.

Stock reaction

The stock was up by 2.93% at $66 a share on Monday, trading at the highest level since 10/10/2023.

Shares were up by around 1% in after-hours trading after the latest results were announced.

Stock performance

• 1 month: +6.70%
• 3 months: -3.04%
• Year-to-date: -3.71%
• 1 year: -18.73%

Zoom stock price targets

• Citigroup: $66
• Rosenblatt: $75
• RBC Capital: $95
• Benchmark: $95
• Stifel: $70
• HSBC: $83
• Wedbush: $80
• JP Morgan: $83
• Mizuho: $100

Zoom Video Communications Inc. is the 874th largest company in the world with a market cap of $19.62 billion.

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Sources: Zoom Video Communications Inc., TradingView, MarketWatch, Benzinga, CompaniesMarketCap