Zoom Communications on Wednesday reported first-quarter earnings and revenue that topped estimates as enterprise sales growth marked a bright spot. June quarter revenue guidance for Zoom stock edged by Wall Street targets.
The software maker reported earnings after the market close.
Zoom earnings for the April-ended quarter were $1.43 per share on an adjusted basis, up 6% from a year earlier. Revenue rose nearly 3% to $1.174 billion.
Zoom stock analysts had projected earnings of $1.31 a share on sales of $1.166 billion.
"In Q1, we launched multiple new products, maintained strong operational discipline, and accelerated our share repurchase activity, reinforcing our commitment to shareholder value," said Chief Executive Eric Yuan, in a statement.
Enterprise A Bright Spot For Zoom Stock Earnings
On the stock market today, Zoom stock wavered, alternating between small gains and losses, in extended trading.
For the current quarter ending in July, Zoom expects revenue of $1.195 to $1.2 billion versus estimates of $1.193 billion.
Zoom's cloud-based software sets up video calls, with chat tools available. Zoom aims to morph into a broader communications platform for business customers. Zoom Video has been integrating artificial intelligence into more products. Many software companies are shifting to AI agents.
Also, Zoom holds $7.5 billion in cash on its balance sheet.
Meanwhile, Microsoft with its Teams communication platform is a big competitor.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
