Zoom Video Communications (NASDAQ:ZM) is a California-based unified communications platform that operates in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Shares of Zoom have dropped 12.9% in the year-to-date period as of close on Wednesday, August 21, 2024. However, the stock gained momentum in after-hours trading on the same day after some positive news came down the pipe.
The company unveiled its second quarter (Q2) fiscal 2025 earnings after markets closed on the same day. Zoom reported that second quarter results came above analyst expectations on both the top and bottom lines. It reported adjusted earnings of $1.39 per share – above the Street estimate of $1.22. Meanwhile, revenues were reported at $1.16 billion, which was just above the $1.15 billion estimate.
Second quarter Enterprise Revenue rose 3.5% year-over-year to $682 million in its quarterly report. Meanwhile, Zoom Video reported operating cash flow of $449 million. That was up 33% compared to the second quarter of fiscal 2024. Moreover, the report revealed that Zoom repurchased approximately 4.8 million shares of common stock in the second quarter of fiscal 2025.
On the customer front, 3,933 customers contributed more than $100,000 in trailing 12 months revenue in the quarter – up 7.1% from the prior year. It posted an online average monthly churn of 2.9% in Q2 FY2025 – down 30 basis points from Q2 FY2024.
Looking forward to the third quarter of fiscal 2025, Zoom Video expects total revenue between $1.16 billion and $1.165 billion. Moreover, it is projecting full fiscal year 2025 revenue between $4.63 billion and $4.64 billion.
