Technology
Zoom stock has best day in almost two years on quarterly results, increased guidance
Zoom CEO Eric Yuan speaks at the Dropbox Work In Progress Conference in San Francisco on Sept. 25, 2019.
Matt Winkelmeyer | Getty Images for Dropbox
Zoom shares soared the most since November 2022 on Thursday after the video chat company reported better-than-expected results for the second quarter and raised its full-year guidance.
The stock rose 13% to close at $68.04. The shares are still down 5.4% for the year, while the Nasdaq has gained 17% over that stretch.
Zoom said revenue in the quarter rose 2.1% from a year earlier to $1.16 billion, topping the average analyst estimate of $1.15 billion, according to LSEG. Adjusted earnings per share came in at $1.39, ahead of the $1.21 average estimate.
For the full fiscal year, Zoom now expects revenue of $4.63 billion to $4.64 billion. The last time Zoom provided guidance, the company said the top end of the expected range was $4.62 billion.
While Zoom has struggled to reaccelerate growth following the slowdown from the pandemic surge, the company has stabilized, reducing customer churn and bolstering its contact center business. CEO Eric Yuan said on the call that Zoom landed its biggest contact center customer ever in the second quarter.
Still, the shares are down almost 90% from their record in October 2020.
Net income in the second quarter increased to $219 million, or 70 cents per share, from $182 million, or 59 cents per share, a year earlier.
Separately, Zoom said CFO Kelly Steckelberg is leaving the company after it reports results for the third quarter. Yuan said the company has hired an executive search firm to find a replacement for Steckelberg, who joined Zoom in 2017.