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.
Tech stocks offer some of the best growth potential, but time and time again, traders and investors ask us “what are the best tech stocks to buy?” You've probably seen shares of companies such as Amazon and Netflix achieve monumental rises in the past few years, but there are still several tech stocks with room for significant gains. Here is our analysts view on the best tech stocks to buy right now
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .
Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.