Investing.com – Zoom Video stock (NASDAQ:ZM) stock fell more than 11% in Tuesday’s premarket as the company’s revised full-year guidance, issued after the close on Monday, disappointed.
Traders ignored the company’s first billion-dollar-revenue quarter as well as overall results that beat estimates.
Raising its guidance for the second time, Zoom said total annual revenue is likely to be fractionally over $4 billion, around 2% higher than what it said in June. It had already revised its initial guidance for the year up by over 5% in March.
Adjusted profit per share is now seen between $4.75 and $4.79.
Zoom’s total revenue in the last financial year grew 326% to $2.65 billion, as individuals, families and corporates took to its video conferencing app to keep life and work going during the pandemic.
At the top end of the forecast for the year, revenue growth is now seen slowing down to 51%, an outcome of a higher baseline and the reopening of economies.
At the end of June, Zoom had over half a million customers with more than 10 employees, up approximately 36% from the same quarter last financial year and an illustration of how it has penetrated the business segment of the videoconferencing market.
Total revenue for the second quarter was $1.02 billion, up 54% on-year. Adjusted net profit rose 51% to $415.1 million.