Zoom Third Quarter Earnings 2022
Zoom has announced its quarterly earnings report for the third quarter of 2022 and to everyone’s surprise, the company has beaten wall street analysts' expectations and predictions. The investors thought that the company would do badly as a result of the expected drop in online video calling usage of its products and services across the globe. But Zoom did just enough of a good job to end the quarter on a profitable note.
Let’s look at the numbers and metrics but before that here is a must-read intro about Zoom and its basic information as a company and business.
Wikipedia snippet about Zoom: Zoom Video Communications, Inc. (commonly shortened to Zoom, and stylized as zoom) is an American communications technology company headquartered in San Jose, California. It provides videotelephony and online chat services through a cloud-based peer-to-peer software platform and is used for teleconferencing, telecommuting, distance education, and social relations.
Eric Yuan, a former Cisco engineer, and executive founded Zoom in 2011 and launched its software in 2013. Zoom’s aggressive revenue growth, and perceived ease-of-use and reliability of its software, resulted in a $1 billion valuation in 2017, making it a “unicorn” company. The company first became profitable in 2019 and completed an initial public offering that year. The company joined the NASDAQ-100 stock index on April 30, 2020. End of the snippet.
Now for the quarterly earning numbers of Zoom.
Earnings per share: The company has made earnings per share of $1.11 in comparison with the stock analyst expectation of only $1.09. Even though the margin of difference is less it is still good that they have beaten this metric since it helps with the overall revenue graph.
Revenue: Zoom has generated quarterly earnings of $1.05 billion U.S. dollars against wall street’s predicted estimation of $1.02 billion. The margin of difference, in this case, is actually pretty good for a company that is definitely going through a drop in usage of its services at scale.
But despite the good earnings result the stock has actually had a tough time in the past couple of days because of investors' skepticism about the future of Zoom in relevance with its current business size and valuation.
You can see that exact thing in the graph image given above.
Even though I understand the investor's mindset based on what is happening with Zoom’s stock price in the past couple of days. I also think that the company in long term will figure out a way to innovate and increase the usage of its services on a global scale.
Kudos to Zoom for ending the quarter on a positive note hope they can make use of these testing times to grow stronger than before.
Thank you for reading this, and God Bless Everyone.
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