TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Where to next for Dimension Data

      5 July 2022

      Zapper is said to seek fundraising at huge valuation

      5 July 2022

      Stage-5 load shedding to continue until Thursday

      5 July 2022

      Big step forward for Cell C as debt deal approved

      5 July 2022

      Eskom unions accept 7% wage offer

      5 July 2022
    • World

      Bitcoin hints at a bottom – but it may be different this time

      5 July 2022

      China, US war of words erupts over lunar missions

      5 July 2022

      Tether fails to calm jittery nerves

      4 July 2022

      EU to impose wide-ranging new rules on the crypto industry

      3 July 2022

      Crypto hedge fund Three Arrows files for bankruptcy

      3 July 2022
    • In-depth

      The bonfire of the NFTs

      5 July 2022

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Investment»Zoom leaps higher on upbeat forecast

    Zoom leaps higher on upbeat forecast

    Investment By Agency Staff24 May 2022
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Zoom Video Communications projected sales and profit for the current quarter that topped Wall Street’s estimates, a sign that the software vendor is finding ways to sustain growth beyond the pandemic boom. Shares jumped 15% in extended trading.

    Revenue will be as much as US$1.12-billion in the period ending in July, the San Jose, California-based company said Monday in a statement. Analysts, on average, estimated $1.11-billion, or growth of about 9% from a year earlier. Profit, excluding some items, will be as much as $0.92/share compared to analysts’ average estimate of $0.84. For the full year, Zoom raised its earnings forecast to as much as $3.77/share from its February projection of $3.51.

    The company’s new products are “enhancing the customer experience and promoting hybrid work”, CEO Eric Yuan said in the statement. “We believe these innovative solutions will further expand our market opportunity for future growth and expansion with customers.”

    Zoom hasn’t maintained the breakneck triple-digit growth it experienced during the pandemic

    Zoom hasn’t maintained the breakneck triple-digit growth it experienced during the pandemic as offices reopen and competition increases from Microsoft’s rival video communications platform. Fiscal first quarter sales increased 12% to $1.07-billion, Zoom’s slowest year-over-year growth on record. While the company’s shares have plummeted 51% this year as part of a broad decline among software makers, some analysts think the selloff has gone too far.

    Benchmark Co’s Matthew Harrigan said in a note before the results that investors have overlooked Zoom’s potential as a key tool for hybrid workplaces as major industries embrace remote work. The company is focusing on its enterprise offerings by expanding products for customer service contact centres and analytics. Zoom recently announced the acquisition of Solvvy, a conversational AI start-up, and unveiled Zoom IQ, a call analytics tool for sales departments.

    New metrics

    Emphasising this shift away from the consumer business, Zoom has started reporting new metrics for enterprise customers. In the period ended 30 April, the company said it had 198 900 enterprise customers, an increase of 24% from a year earlier, with a net dollar expansion rate of 123%.

    “I think the market wants to see signs that Zoom isn’t just a Covid stock,” said Tejas Dessai, a research analyst at Global X, which counts Zoom as a top holding of its cloud-focused exchange traded fund. “We would like to see increased consumption from larger enterprises, especially those with more than $100 000 in annual spending on the platform,” Dessai said in an interview before the results were released.  — Brody Ford, (c) 2022 Bloomberg LP

    Eric Yuan Microsoft Zoom
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleJo’burg seeks private sector help to solve electricity crisis
    Next Article Is the end of the bitcoin winter nigh?

    Related Posts

    Where to next for Dimension Data

    5 July 2022

    Zapper is said to seek fundraising at huge valuation

    5 July 2022

    Stage-5 load shedding to continue until Thursday

    5 July 2022
    Add A Comment

    Comments are closed.

    Promoted

    Hot Ink certifies and diversifies to maintain competitive printing edge

    5 July 2022

    Increased flexibility with Dell Precision Mobile Workstations

    5 July 2022

    The 5 secrets of customer experience in the cloud era

    5 July 2022
    Opinion

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.