The video conferencing company Zoom, which enjoyed massive growth during the coronavirus pandemic, has suffered a 16 percent slide in share price today after the company reported second-quarter earnings that beat expectations but showed slow growth.
CNBC reports that shares of the video-conferencing app company Zoom fell by 16 percent in intraday trading as the company published its fiscal second-quarter earnings, beating analysts’ expectations but showing poor growth in comparison to the previous quarter. CNBC reported the following figures:
- Earnings: $1.36 cents per share, adjusted, vs. $1.16 per share as expected by analysts, according to Refinitiv.
- Revenue: $1.02 billion, vs. $991.0 million as expected by analysts, according to Refinitiv.
Zoom’s revenue increased by 54 percent year over year in the quarter ending July 31. Zoom saw revenue growth of 191 percent in the quarter previous. The company is reportedly aiming to see growth of 31 percent next quarter.
The company reported its gross margin widened to 74.4 percent up from 72.3 percent last quarter. During the quarter, the teleconferencing giantannounced plans to acquire the cloud contact-center software provider Five9 for $14.7 billion in stock. The deal comes following Zoom gaining millions of users amidst the coronavirus pandemic as people flocked to the service for online meetings, classes, and digital social gatherings.
In the same quarter, Zoom announced the availability of Zoom Events, which allows organizations o create premium online meetings. Zoom also announced that it invested in the event software developers Cvent as the company sought to go public through a merger with a special purpose acquisition company.
Despite the company’s massive growth over the last year, the company continues to face serious headwinds. Pranksters invented “zoom bombing,” in which they intrude and disrupt teleconferences. The company recently agreed to an $85 million settlement over privacy violations and zoom bombing.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address firstname.lastname@example.org