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Zoom Drops On Slower User Growth, Q3 View

Zoom Video Communications, Inc. (ZM) shares are sliding more than 16 percent on Tuesday morning trade after the company provided a slower user growth for the second quarter. The outlook for the third quarter also comes in below the Street estimates.

The communications technology company expects third-quarter revenues of $1.015 billion to $1.020 billion and adjusted earnings of $1.07 to $1.08 per share. Wall Street analysts were looking for earnings of $1.09 per share on revenue of $1.01 billion.

For fiscal 2022, the company expects revenue of $4.005 billion- $4.015 billion and adjusted earnings of $4.75 to $4.79 per share. This is higher than its earlier outlook for revenue of $3.97 billion to $3.99 billion and adjusted earnings of $4.56 to $4.61 per share.

Analysts currently estimate earnings of $4.67 per share on revenues of $4.01 billion. Currently, shares are at $291.51, down 16.11 percent from the previous close of $347.50 on a volume of 11,564,095. For the 52-week period, the shares have traded in a range of $273.20-$588.84 on a volume of 3,209,606.

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