Zoom Slides 7% Premarket as Soft Q3 Guidance Overshadows Q2 Beat
ZM sits 35% above its 52-week low of $70.7 on elevated volume (2.0× avg).
Summary
Zoom reported Q2 revenue of $1.28B (+4.9% YoY) and adjusted EPS of $1.55, both beating consensus, but Q3 guidance of $1.275-1.28B revenue and $1.46-1.48 EPS came in below Street estimates. The stock is down 7.1% premarket to $93.75 as investors focus on the soft outlook. Enterprise revenue grew 7.8% and now makes up 62% of total revenue, while Online revenue is flat. Full-year guidance was raised slightly, with revenue of $5.085-5.095B and EPS of $6.08-6.12, but the Q3 miss is driving the negative reaction. This follows yesterday's earnings release and multiple news reports; today's premarket decline is a new trading session's move.
At the time of this announcement, ZM was trading at $95.67 on NASDAQ in the Technology sector, with a market capitalization of approximately $29.6B. The 52-week trading range was $70.70 to $114.74. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.