Zoom’s Earnings Top Expectations as Enterprise Revenue Climbs

Zoom Communications (ZM) reported third-quarter earnings after the bell Monday that topped analysts’ expectations, and announced its name changed to Zoom Communications from Zoom Video Communications.

The remote video communication company saw revenue grow 4% to $1.18 billion, above the analyst consensus compiled by Visible Alpha. Net income at $207.1 million or 66 cents per share was up from $141.21 million or 45 cents per share a year earlier, beating expectations. The gains came as enterprise revenue climbed 6% to $698.9 million, while online revenue was roughly flat at $478.7 million.

The company raised its full-year adjusted earnings per share forecast to between $5.41 and $5.43, up from $5.29 to $5.32, and its revenue outlook to between $4.66 billion and $4.66 billion, up from $4.63 billion to $4.64 billion. Both figures were above analysts’ expectations.

Gains Come as Zoom Adds New Customers, AI Offerings

The earnings beat came as Zoom added new customers and worked to sell high-end packages with advanced artificial intelligence (AI) capabilities. Zoom said that it had 3,995 customers contributing more than $100,000 in trailing 12-months revenue at the end of the third quarter, up 7.1% year-over-year.

CEO Eric Yuan also cited “major milestones” introduced at the company’s Zoomtopia event last month, including AI Companion 2.0 and paid AI add-ons.

Shares of Zoom wavered between gains and losses in extended trading Monday following the release. The stock was up close to 24% from the start of the year through Monday’s close.

CORRECTION & UPDATE—Nov. 25, 2024: This article has been updated to reflect the company’s announcement changing its name to Zoom Communications from Zoom Video Communications.