Zoom’s Q3 Earnings Beat, Revenue Growth of 4% Year-Over-Year
Zoom Video Communications, the video calling software maker, reported strong fiscal third-quarter results and provided guidance that slightly exceeded expectations. Despite a 4% decline in after-hours trading, the company’s shares have risen by 24% this year, outpacing the S&P 500’s 25% gain.
Key highlights from the quarter include:
* Earnings per share: $1.38 adjusted, above the expected $1.31
* Revenue: $1.18 billion, slightly above the expected $1.16 billion
* Year-over-year revenue growth of 4%
* Net income: $207.1 million, or 66 cents per share, up from $141.2 million, or 45 cents per share, in the same quarter a year earlier
* 192,400 enterprise customers, an increase of 800 customers from the previous quarter
For the fourth quarter, Zoom forecasts adjusted earnings per share of $1.29 to $1.30, with revenue of $1.175 billion to $1.180 billion. This is slightly above analyst expectations of $1.29 per share and $1.17 billion in revenue.
The company also boosted its view for the 2025 fiscal year, expecting adjusted earnings per share of $5.41 to $5.43 and revenue of $4.656 billion to $4.661 billion. This represents about 3% growth, above the expected $5.35 per share on revenue of $4.64 billion.
Zoom also announced several new features, including a premium Custom AI Companion that will connect to corporate glossaries and services such as ServiceNow and Workday, and single-use webinar options with room for up to one million attendees. The company will be rebranding from Zoom Video Communications to Zoom Communications Inc., reflecting its evolution into an AI-first work platform for human connection and long-term growth.
