Zoom Video Communications (NASDAQ:ZM) tumbled Tuesday after issuing weaker-than-expected guidance for the current quarter. The video communications company reported better-than-expected results for its most recent quarter, but the overall growth seen during the pandemic has slowed considerably.
Total revenue for the third quarter was $1,101.9 million, up 5% year over year. After adjusting for foreign currency impact, revenue in constant currency was $1,126.1 million, up 7% year over year in constant currency. Enterprise revenue was $614.3 million, up 20% year over year and
Online revenue was $487.6 million, down 9% year over year.
Net income attributable to common stockholders for the third quarter was $48.4 million, or $0.16 per share, compared to GAAP net income attributable to common stockholders of $340.3 million, or $1.11 per share in the third quarter of fiscal year 2022.
Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of October 31 was $5.2 billion.
CEO Eric Yuan said, “In Q3, we drove revenue above guidance with continued momentum in Enterprise. In addition, our non-GAAP operating income came in meaningfully higher than our outlook, setting us up to finish the year with full-year revenue growth, strong GAAP and non-GAAP profitability, and free cash flow that we expect to be at the high end of our range of $1 billion to $1.15 billion.”
ZM shares floundered $6.52, or 8.1%, to $73.74.
