Zoom (NASDAQ: ZM) shares are down premarket on Tuesday after the company reported its second-quarter earnings, with its Q3 guidance coming in below forecasts.
Zoom’s revenue for Q2 was $1.02 billion versus $990 million expected, while its earnings per share came in at $1.35, above the forecasted $1.16.
Revenue guidance was forecast at between $1.015 billion and $1.02 billion, with analysts predicting $1.013 billion. Earnings per share guidance for Q3 was between $1.07 and $1.08, with analysts expecting $1.09.
The pandemic saw Zoom’s user growth surge as employees and students all moved online. The company reported a 458% rise in customers with 10 or more employees from Q2 to Q3 2020. However, that has slowed to 36% in Q2.
Ahead of yesterday’s Q2 release, JPMorgan warned that video collaboration app download data had declined.
However, customers paying over $100,000 are continuing to grow.
Zoom’s share price is down 11.65% at $307 premarket.
Should you invest in Zoom shares?
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