“Zoom’s Q1 earnings: 86% profit drop and 2.9% revenue increase”

2023-05-23 18:02:39


Zoom shares fell 7.13% at mid-session on the Nasdaq after announcing this Tuesday that it obtained benefits of 15.4 million dollars (14.3 million euros) in its first fiscal quarter, ended in April, with a decline of 86.4% compared to the gains of the same period a year ago.

In this way, the company’s titles were trading at mid-session on the parquet at 66.32 dollars (61.57 euros), 7.13% less than at the opening, leaving, therefore, a value of 5.09 dollars (4.73 euros).

These movements occur just after the presentation of results this Tuesday, in which Zoom reported a drop of 86.4% in its profit in its first quarter.

However, Zoom’s revenues in the period increased by 2.9% in the interannual rate, to 1,105 million dollars (1,026 million euros). At the end of the period, Zoom had 215,900 business customers, an increase of 9%, while users who contribute more than $100,000 (92,841 euros) per year amounted to approximately 3,580, 23% more.

On its side, the costs of income amounted to 263.9 million dollars (245 million euros), while the sales, marketing, general, administrative and R&D items accounted for 831.7 million dollars ( 772.2 million euros). Total activity costs totaled 1,096 million dollars (1,018 million euros), 24% more than the previous 883.7 million dollars (820.4 million euros).

“Our customers consider Zoom critical to their internal and external goals around the world,” said the company’s founder and CEO, Eric Yuan.

“This relationship with our customers helped us exceed our forecasts thanks to growth in business services and stabilization of online revenue, while driving greater efficiencies in our business to deliver strong profitability and free cash flow margin. “, he added.

Facing the end of the current financial year, Zoom is confident of raising its annual income to a range of between 4,465 and 4,485 million dollars (4,145 and 4,164 million euros), while the diluted earnings per share for the entire year will range between 4 .25 (3.95 euros) and 4.31 dollars (4 euros).

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