Zoom Video Communications reported January-quarter earnings and revenue that topped estimates amid lowered expectations. ZM stock popped on mixed 2023 guidance as cost-cutting moves improved expected profitability.
The company reported fiscal fourth quarter earnings after the market close on Monday. Zoom earnings for Q4 fell less than expected.
Zoom Video said it earned $1.22 per adjusted per share, down 5% from a year earlier. Revenue rose 4% to $1.12 billion.
Sales growth slowed for the eighth-straight quarter as the company adjusts to product demand post-coronavirus emergency. A year earlier, Zoom earned $1.29 a share on sales of $1.07 billion.
Zoom stock analysts had projected earnings of 81 cents a share on sales of $1.1 billion for the period ended Jan. 31.
Zoom stock popped 6.9% to 78.80 in early trading on the stock market today. For 2023, ZM stock had advanced 9% as of Monday's market close after falling 63% last year.
ZM Stock: Outlook Mixed
For fiscal 2024, Zoom said it expects earnings of $4.15 at the midpoint of its outlook vs. estimates of $3.66. The company said it expects revenue of roughly $4.44 billion vs. estimates of $4.60 billion.
Zoom's cloud-based software sets up video calls, with chat tools available. Zoom Video aims to morph into a broader communications platform for business customers.
Zoom Video on Feb. 7 said it will cut 1,300 jobs, about 15% of its workforce.
"While the macroeconomic situation continues to negatively impact our overall growth, we have maintained a healthy balance sheet and operating cash flow generation of approximately $1.29 billion," Chief Executive Eric Yuan said in the earnings news release.
Heading into the Zoom earnings report, ZM stock owned an IBD Relative Strength Rating of only 18 vs. a best-possible 99, according to IBD Stock Checkup.
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