"Traders are probably taking profits going into this shortened and light Thanksgiving holiday week,", Michael Ashley Schulman stated.
Even more so, the Zoom revenue growth is expected to be between $4.65 to $4.66 billion based on the previous forecast of between $4.63 billion and $4.65 billion. Also, the online platform is still continuing to experience significant expenses from its large client base due to the fact that hybrid working almost become a normality in various companies. So, the Zoom Video Communications company is struggling to integrate artificial intelligence technology into its software in order to provide new features for the company’s daily operations.
Also, the online platform managed to increase the full-year adjusted earning per share forecast to a range of $5.41 to $5.43, compared with the previous estimates that revealed a range of between $5.29 to $5.32.
But, it’s important to mention that the Zoom online platform is currently experiencing strong competition from other video conferencing services like Microsoft Teams and Cisco Webex due to the fact that they are fighting for more clients in this already full market.
According to the Chief Financial Officer, Michelle Chang, enterprise Zoom revenue growth for the third quarter of the year was recorded at 6% which is currently making up to 59% of the overall Zoom revenue. This successfully reflects Zoom's intention to switch to a more enterprise-centered customer base.
Also, the Zoom revenue in the third quarter of the year was recorded at $1.18 billion, which managed to surpass the previous estimates from the LSEG data of $1.16 billion. Also online platform reported an adjusted earnings per share of $1.38 in the quartet that ended on October 31, beating the previous estimates of $1.31.
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