Zoom Video Communications (ZM) reported earnings and revenue for the April quarter that exceeded estimates, with enterprise sales growth surpassing expectations. However, revenue guidance for Zoom Video stock fell slightly below projections as analysts on Wall Street search for a potential turning point amidst slowing growth.
For the first quarter, Zoom earnings were $1.35 per share on an adjusted basis, representing a 16% increase from the previous year. Revenue also saw growth, rising by 3.2% to $1.14 billion. Analysts had forecasted earnings of $1.19 a share on sales of $1.13 billion. Within the enterprise market, revenue for business customers increased by 5.3% to $665.7 million, outperforming estimates of $659 million.
Despite trading flat following the earnings report, Zoom stock had experienced an approximate 11% decline before the release due to concerns about slowing growth in its video conferencing software demand post-Covid-19 pandemic surge and competition from Microsoft (MSFT) and Teams communication platform services.
Looking ahead to the July quarter, Zoom expects revenue to fall within a range of $1
