Zoom - Q3 Results
02.12.2021
Zoom reported better-than-expected quarterly earnings this week, but still their shares closed 14% down, after the results showed a revenue growth slowdown. Wall Street firms cut price targets on the stock.
Zoom stock is a top trending ticker on Yahoo Finance. The stock is down about 40% year-over-date, hitting a 52-week low.
As you can see from our infographic, Adjusted Earnings Per Share (EPS) rose above analyst forecasts, rising 12.1% year over year. Zoom's revenue also beat analyst estimates, climbing 35.2% YoY. But that was the slowest pace of revenue growth in 15 quarters and only last year revenue came above 300%. The number of customers contributing $100,000 in trailing-12-month (TTM) revenue also went above estimates of 2.380 and reached 2.507.
The most encouraging metric from the report had to do with Zoom's renewal rate with established users. These clients nearly all chose to stick with that platform. Zoom's average contract renewal was at a 30% higher annual rate for the 14th consecutive quarter.
Zoom's next earnings report is estimated to be released on March 1, 2022.
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