Zoom shares drop despite lockdown revenue surge
Zoom saw its shares slip in after-hours trading this evening despite beating expectations for the third quarter.
The video conferencing app has enjoyed unrivalled growth this year as the outbreak of Covid-19 forced millions of people to work and socialise from home.
This continued in the third quarter, with Zoom posting revenue of $777.2m (£583), up 367 per cent on the same period last year.
The firm posted profit of $198.4m, or $0.66 per share, from just $2.2m last year.
The figures came in ahead of analysts’ expectations as the video platform continued to benefit from the shift to home working.
But they failed to impress investors, and shares were more than 4.5 per cent lower in after-hours trading.
“We remain focused on the communication needs of our customers and communities as they navigate the current environment and adapt to a new world of work from anywhere using Zoom. We aspire to provide the most innovative, secure, reliable, and high-quality communications platform to help people connect, collaborate, build and learn on Zoom,” said Zoom founder and chief executive Eric Yuan.
Zoom said it had continued to expand over the quarter, with its number of customers with more than 10 employees surging to almost 435,000.
The company said it also had more than 1,000 customers contributing more than $100,000 in revenue over a year.
Zoom forecast fourth quarter revenue of between $806m and $811m — also ahead of market expectations.