Zoom Video Communications (NASDAQ:ZM) shares fell as much as 9% in extended trading on Monday after the video-calling software maker pared back its full-year forecast for earnings and revenue.
Earnings proved to be $1.05 per share, adjusted, vs. the expected 94 cents per share, on revenue of $1.10 billion, vs. $1.12 billion as expected by analysts.
Zoom’s revenue in the second fiscal quarter grew 8% year over year, slowing from 12% growth in the prior quarter, according to a statement.
The second fiscal quarter ended on July 31. Zoom’s net income fell to $45.7 million in the quarter from $316.9 million in the year-ago quarter as the company increased spending on sales and marketing.
The company said at the end of the quarter it had about 204,100 enterprise customers, which are business units that Zoom’s direct sales teams, resellers or partners work with. That’s up less than 3% from 198,900 three months earlier.
Enterprise customers deliver 54% of total revenue. Online business customers are Zoom customers that don’t work directly with Zoom salespeople, re-sellers or partners.
With respect to guidance, Zoom called for adjusted fiscal third quarter earnings of 82 cents per share to 83 cents per share on $1.095 billion to $1.100 billion in revenue. Analysts polled by Refinitiv had been looking for 91 cents in adjusted earnings per share and $1.15 billion in revenue.
ZM shares were pounded at Tuesday’s opening bell $11.38, or 11.7%, to $86.06.
