(Bloomberg) -- Zoom Video Communications Inc. gave a sales forecast for the current quarter that beat analysts’ estimates, suggesting its expanded suite of products is making gains with business customers.
Revenue will be $1.16 billion to $1.17 billion in the period ending in October, the company said Wednesday in a statement. Profit, excluding some items, will be about $1.30 per share. Analysts, on average, projected adjusted earnings of $1.24 per share on sales of $1.16 billion, according to data compiled by Bloomberg. The company also raised its fiscal year sales and profit forecasts.
Separately, Zoom announced that Chief Financial Officer Kelly Steckelberg will step down from her role at the end of the current fiscal quarter on Oct. 31. The company said Steckelberg’s departure isn’t a result of any disagreement with Zoom and a search has begun for a successor.
The company, known for its signature videoconferencing software, is focused on offering more tools for business customers, including phone systems, contact centers and an artificial intelligence assistant. Zoom said it had 191,600 enterprise customers, including 3,933 contributing more than $100,000 in trailing 12-month revenue at the end of the quarter. Enterprise revenue increased 3.5% to $682.8 million in the fiscal second quarter.
The shares rose about 2% in extended trading after closing at $60.23 in New York. The stock has dropped 16% this year and hit a record low earlier this month.
Total sales increased 2.1% to $1.16 billion in the period ended July 31. Analysts, on average, estimated $1.15 billion. Profit, excluding some items, was $1.39 a share in the period ended July 31, compared with the average projection of $1.22.
An ongoing loss of consumers and small businesses from Zoom has concerned investors, particularly since these customers are higher-profit than corporate clients. Average monthly churn in this segment was 2.9% in the quarter, compared with 3.2% in the previous period. Sales in the segment were $479.7 million, little changed from a year earlier.
Chief Executive Officer Eric Yuan said the company’s business with smaller customers showed “resilience,” adding that the churn number was Zoom’s lowest ever.
Zoom’s video product has been host to massive political events in recent weeks, such as with groups organizing fundraising and support for Vice President Kamala Harris. The company Monday launched a new single-use webinar offering that can support as many as 1 million attendees.
(Updates with comments from CEO in the eighth paragraph.)
©2024 Bloomberg L.P.
