Zoom Communications Inc (NASDAQ:ZM) reported financial results for the second quarter after the market close on Tuesday. Here’s what you need to know from the print.
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Zoom Q2 Earnings Highlights
Zoom reported revenue of $1.28 billion for the second quarter, beating the consensus estimate of $1.27 billion. The communications company posted second-quarter adjusted earnings of $1.55 per share, beating analyst estimates of $1.48 per share, according to Benzinga Pro.
Total revenue was up 4.9% on a year-over-year basis. Zoom said enterprise revenue increased 7.8% year-over-year to $787.5 million, and online revenue was up 0.6% year-over-year to $489.7 million.
Online monthly average churn was 2.9% in the quarter. The company ended the quarter with 4,625 customers contributing more than $100,000 in trailing 12-month revenue, up 8.2% year-over-year.
“Our AI-first Customer Experience portfolio continues to scale, delivering high-double-digit ARR expansion, driven in part by strong adoption of Zoom Virtual Agent, whose customer count increased 256% year over year,” said Eric Yuan, founder and CEO of Zoom.
Net cash provided by operating activities was $494.8 million in the quarter and free cash flow came in at $472.4 million. Zoom exited the period with $7.2 billion in cash, cash equivalents and marketable securities, excluding restricted cash.
Zoom expects third-quarter revenue to be in the range of $1.275 billion to $1.28 billion, versus estimates of $1.282 billion. The company anticipates third-quarter adjusted earnings of $1.46 to $1.48 per share versus estimates of $1.50 per share.
Zoom also raised its full-year guidance. The company now expects full-year revenue of $5.085 billion to $5.095 billion, versus estimates of $5.09 billion. Zoom now sees full-year adjusted earnings of $6.08 to $6.12 per share versus estimates of $6.08 per share.
Zoom’s management team will discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.
ZM Stock Falls After Earnings
Zoom shares were down 2.92% in after-hours, trading at $97.97 at the time of publication on Tuesday, according to Benzinga Pro.
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