Zoom Communications Inc. (NASDAQ:ZM) on Tuesday reported better-than-expected financial results for the second quarter but issued soft guidance for the third quarter.
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.
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.
"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.
Zoom shares dipped 7% to trade at $93.89 on Wednesday.
These analysts made changes to their price targets on Zoom following earnings announcement.
- Jefferies analyst Samad Samana maintained the stock with a Buy and lowered the price target from $118 to $116.
- RBC Capital analyst Rishi Jaluria reiterated the stock with an Outperform rating and maintained a $130 price target.
- BTIG analyst Allan Verkhovski reiterated the stock with a Buy and maintained a $125 price target.
- Needham analyst Joshua Reilly reiterated the stock with a Buy and maintained a $130 price target.
- Cantor Fitzgerald analyst Thomas Blakey reiterated the stock with a Neutral and maintained a $104 price target.
Considering buying ZM stock? Here’s what analysts think:
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