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Zoom Q3 Profit Tops Estimates, Sees Q4, FY Results Above View; But Stock Down

Zoom Video Communications Inc. (ZM) reported that its net income attributable to common stockholders for the third quarter of fiscal year 2022 rose to $340.3 million or $1.11 per share from $198.4 million or $0.66 per share in the third quarter of fiscal year 2021.

ZM closed Monday regular trading at $242.28 down $9.02 or 3.59%. In the after-hours, the stock further dropped $15.28 or 6.31%.

Non-GAAP net income for the third quarter was $338.4 million or $1.11 per share compared to $297.2 million or $0.99 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.09 per share for the third-quarter. Analysts' estimates typically exclude special items.

Total revenue for the third quarter was $1.05 billion, up 35% year over year. Analysts expected revenue of $1.02 billion for the third quarter.

At the end of the third quarter of fiscal year 2022, Zoom had 2,507 customers contributing more than $100,000 in trailing 12 months revenue, up about 94% from the same quarter last fiscal year. The company had about 512,100 customers with more than 10 employees, up about 18% from the prior year.

For fourth quarter of fiscal year 2022, the company projects non-GAAP income from operations to be in the range of $361.0 million - $363.0 million, non-GAAP earnings per share of $1.06 - $1.07, and total revenue of $1.051 billion - $1.053 billion. Analysts expect the company to report earnings of $1.05 per share and revenues of $1.02 billion for the fourth-quarter.

Looking ahead for fiscal year 2022, the company expects non-GAAP income from operations to be in the range of $1.598 billion - $1.600 billion, non-GAAP earnings per share of $4.84 - $4.85. Total revenue is expected to be between $4.079 billion and $4.081 billion, representing about 54% year-over-year growth. Analysts expect the company to report earnings of $4.78 per share and revenues of $4.02 billion for the fiscal year 2022.

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