Markets are ‘having their cake and they’re eating it too’: Katz
UBS managing director and senior portfolio manager Jason Katz provides insight into market trends.
Zoom Video Communications Inc.'s quarterly revenue surpassed $1 billion for the first time in the company’s history, though the strong demand for its videoconferencing services that made it ubiquitous during the pandemic is showing signs of easing as regular activities resume.
The roughly 54% increase in revenue, while slightly better than Wall Street expected, couldn’t match the huge growth that Zoom had in the year-earlier period, when revenue surged fourfold compared with the prior year as companies leaned more heavily into remote working.
While the company forecast revenue of more than $1 billion again in the current quarter, its adjusted earnings guidance came in lower than expected. And company officials said small businesses and consumers were starting to spend less as opportunities for in-person meetings and gatherings expand. Zoom officials said some metrics supercharged by the pandemic had begun to normalize as customers returned to "more thoughtful, measured buying-patterns."
|ZM||ZOOM VIDEO COMMUNICATIONS, INC.||289.50||-58.00||-16.69%|
Zoom shares fell 12% in after-hours trading, after closing up 2% on Monday.
S&P 500, NASDAQ HIT RECORD HIGHS
Research firm International Data Corp. projects collaboration applications to become a roughly $51 billion market by 2025, nearly double 2020 levels.
Microsoft Corp. MSFT 1.29% in its most recent earnings report said that use of Teams, its group conferencing and collaboration software, had reached record levels with nearly 250 million monthly active users and nearly 80 million monthly active Teams Phones users with total calls surpassing one billion in one month.
Zoom Phone, which the company sells as a telephone option for huddle rooms and executive offices, in August reached 2 million seats sold, and the number of Phone customers that generated more than $100,000 in revenue over the previous 12 months more than tripled from the comparable period a year earlier, company executives said.