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Zoom (ZM) Q3 Earnings Report 2025
Eric Yuan, founder and CEO of Zoom Video Communications, speaks at the Concordia Annual Summit in New York on September 25, 2024.
Leigh Vogel | Concord Summit | fake images
Zoom Shares fell 4% in extended trading on Monday after the video calling software maker announced strong fiscal third-quarter results and gave quarterly guidance that was slightly above expectations.
Here’s how the company fared compared to the LSEG consensus:
- Earnings per share: $1.38 adjusted vs. $1.31 expected
- Revenue: $1.18 billion vs. $1.16 billion expected
Zoom’s revenue grew about 4% year over year in the quarter ended Oct. 31, according to a statement. Zoom has grown its revenue in the single digits for two and a half years, a stark difference from 2020 and 2021, when the Covid-19 pandemic led the business to triple in size.
Net income of $207.1 million, or 66 cents per share, increased from $141.2 million, or 45 cents per share, in the year-earlier quarter.
The company reported 192,400 enterprise customers in the quarter, up 800 customers from the previous quarter.
Regarding guidance, Zoom called for between $1.29 and $1.30 in fiscal fourth-quarter adjusted earnings per share on $1.175 billion to $1.180 billion in revenue. Analysts surveyed by LSEG expected $1.29 per share and $1.17 billion in revenue.
Zoom raised its outlook for fiscal 2025. It expects between $5.41 and $5.43 in adjusted earnings per share, with between $4.656 billion and $4.661 billion in revenue. The middle of the income range implies growth of around 3%.
The consensus for LSEG was $5.35 per share on revenue of $4.64 billion. In August, Zoom said it was looking for between $5.29 and $5.32 per share and revenue between $4.63 billion and $4.64 billion.
During the quarter, Zoom said that in the first half of 2025 it will launch a premium custom AI Companion that could connect to glossaries and corporate services such as Service now and work day. Zoom also began offering single-use webinar options, with capacity for up to one million attendees.
As of Monday’s close, Zoom shares were up about 24% this year, while the S&P 500 index had gained 25%.
The company also said its corporate name will change from Zoom Video Communications to Zoom Communications Inc.
“This shift reflects our evolution toward an AI-based work platform for human connection and our vision for long-term growth,” Zoom founder and CEO Eric Yuan said in a conference call with analysts.
