Zoom Video Communications, Inc. (ZM) shares are down on Tuesday morning trade, on concerns that the meteoric rise in demand for video might be curbed in the coming quarters as the covid-19 vaccine seems to be a reality in the near future. On Monday, the video communication provider has reported better than expected third-quarter results.
Currently, ZM is at $418.50, down 12.48 percent from the previous close of $478.36. For the 52 week period, the shares have traded in a range of $62.02 to $588.84 on average volume of 11,955,601.
Net profit for the third quarter was $192.24 million, a turnaround from loss of $1.68 million in the previous year. The company reported adjusted earnings of $0.99 per share while analysts expected $0.76 per share.
Quarterly sales were $777.19 million, up from $166.59 million in the previous year.
Looking ahead to the fourth quarter, the company expects revenue in a range of $806 to $811 million and adjusted earnings between $243 and $248 million and earnings per share in a range of $0.77 to $0.79.
For the fiscal 2021, the total revenue is expected to be $2.57 to $2.58 billion. Non-GAAP diluted EPS is expected to be between $2.85 and $2.87.
Today, Amazon Web Services, Inc. (AWS) announced that Zoom Video Communications, Inc. has selected AWS as its preferred cloud provider.
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