Zoom’s outlook for both the April quarter and the January 2024 fiscal year are mixed, with slower revenue growth than the Street had expected, but better-than-forecast profitability, reflecting a recent round of job cuts and other cost reductions.
The videoconferencing company continues to see growth moderate from a Covid-era boom, with guidance for the current year pointing to marginal growth for a company that at one point posted three straight quarters of revenue well north of 300%.
Earlier this month, Zoom announced plans to reduce its staff by about 15%, affecting about 1,300 people.
Zoom in late trading is 7.84% higher at $79.5.
Zoom earned $1.22 a share in the quarter on an adjusted basis, topping both the company’s guidance range of 75 to 78 cents a share, and the Street consensus at 80 cents. Under generally accepted accounting principles, the company lost 36 cents a share. Free cash flow was $183.3 million, down from $186.6 million in the year-ago quarter.
Zoom CEO Eric Yuan noted in a statement that “the macroeconomic situation continues to negatively impact our overall growth.”
For the full fiscal year, Zoom reported revenue of $4.39 billion, up 7%, or 9% adjusted for currency. On a non-GAAP basis, the company earned $5.07 a share for the year.
Zoom said it has about 213,000 enterprise customers, up 12% from a year ago, with 3,471 customers generating more than $100,000 in trailing 12 months revenue, up 27% from the same period last year.
Zoom sees fiscal first quarter revenue of between $1.08 billion and $1.085 billion, up just a hair from the $1.07 billion reported in the year-earlier quarter, and below Street consensus at $1.11 billion. The company sees adjusted profits of between 96 and 98 cents a share, above the Street at 84 cents.
For the January 2024 fiscal year, Zoom sees revenue of between $4.435 billion and $4.455 billion, short of the Street consensus at $4.6 billion, but with adjusted profits of between $4.11 and $4.18 a share, ahead of consensus at $3.65.
