Zoom Video (NASDAQ:ZM) earnings for the communication company’s fiscal third quarter of 2020 have ZM stock falling on Friday. This is despite it beating out Wall Street’s estimate of 4 cents per share with adjusted EPS of 9 cents. Revenue of $166.59 million is also better than analysts’ estimates of $165.15 million for the quarter.
Lets’ take a look at what else went down in the Q3 Zoom Video earnings report.
- Adjusted EPS is up 800% from the single penny reported in the same period of the year prior.
- Revenue is 84.85% better than the $90.12 million from the fiscal third quarter of 2019.
- Losses from operations of -$1.68 million are 58.49% wider YoY from -$1.06 million.
- The Zoom Video earnings report includes a net profit, which is better than the net loss from the same time last year.
Eric Yuan, founder and CEO of Zoom Video, says this about the ZM stock results.
“Our third quarter was another strong performance for Zoom. Our execution helped drive revenue growth of 85% with increased non-GAAP profitability year-over-year and free cash flow of $54.7 million.”
The Zoom Video earnings report also includes its fiscal 2020 outlook. Its guidance includes Adjusted per-share earnings of roughly 27 cents on revenue ranging from $609.00 million and $610.00 million. That stacks up well next to Wall Street’s estimates of 17 cents per share and $588.70 million. However, ZM stock is still down as investors sell.
ZM stock was down 8.96% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.