Zoom's forward-looking statements and quarterly results
Zoom shares fell on Monday despite the fact that the company surpassed its third quarter and fourth quarter forecasts. At the same time, it is difficult for Zoom to compete in the large corporate segment.
Earnings per share rose 1% to $0.99, an increase of $0.23. Zoom's gross profit for 3Q was 66.7%, with an average pre-pandemic figure of around 80%.
Revenue increased by 367% to $777.2 million, compared to last year's figure.
Zoom stated that it has 433,700 customers with more than 10 employees, which is 485% more than the year before.
Zoom stated that at the end of the quarter it had 1,289 customers who paid more than $100,000 in annual subscriptions. Although Zoom published its third quarter results and forecasts for the fourth quarter better than Wall Street analysts estimated, shares fell by around 5% after the close of trading on Monday.
Zoom shares have grown by more than 600% since the beginning of the year, raising questions about whether the company is overpriced. Zoom has received a spike in growth thanks to the conditions of the pandemic, but analysts are now asking how long it could last.
The CFO of Zoom Kelly Steckelberg said: "The company has seen great user growth in the third quarter, but this is partly due to the jump in free users as millions of students and teachers have started a new school term".
The growth in the number of users requires more computing power, and correspondingly more spending on cloud data centre services. Given that it is the number of free accounts that is growing, Zoom is losing a share of its profits.
In order to expand its services and ensure its growth following the pandemic, Zoom recently launched new services such as OnZoom's online event service and the Zapps product for the integration of third-party applications.
Projections from Zoom
The Company expects earnings per share for the fourth quarter of 2021 to be $0.77-$0.79, which is above the analyst estimate of $0.66. At the same time, earnings will amount to $806 million $811 million, which is also higher than analysts' expectations of $730.1 million.