Zoom Video Communications, Inc. (ZM), a company providing a video-first communications platform, has declined 6.80% in aftermarket trading session. Consequently, ZM stock is trading at $225.80 at the time of the writing. On Monday, ZM closed the day at $242.28 after declining 3.59% during regular trading hours. The company has faced a consistent decline despite the release of outstanding quarterly results.
ZM Q3 2021 Financial Highlights
On Monday, ZM released the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company had cash and cash equivalents of $1.32 billion on 30th September 2021. The total revenue generated by the company during the period was $1.05 billion against $777.19 million for the same period of 2020. The total operating expenses for the period were $488.94 million against $326.22 million for the same period of 2020. The net income generated by the company during the period was $340.38 million against $198.64 million for the same period of 2020. The net income per basic and diluted share for the period was $1.14 and $1.11 respectively against $0.70 and $0.66 for the same three-month period of 2020.
Financial Outlook
Alongside the financial results, ZM also reported the financial outlook for the upcoming quarter and complete fiscal 2021. The company believed that the total revenue for the fourth quarter of 2021 would stand between $1.051 and $1.053 billion. The non-GAAP income from the operations was expected in the range of $361 million and $363 million. The non-GAAP diluted EPS was estimated to stand between $1.06 and $1.07. For the full fiscal year 2021, the total revenue was expected to range between $4.079 billion to $4.081 billion. The non-GAAP income from operations was expected to lie between $1.598 billion and $1.600 billion. The non-GAAP diluted EPS was expected to range between $4.84 and $4.85.
Executive Commentary
ZM founder and CEO, Eric S. Yuan, while commenting on the results said that the company has continued and would continue to deliver happiness to its customers through innovation and dedication. He further said that looking forward; the company expects to close the year on a high in terms of financial performance. He expressed his pleasure over the fact that the company is on its way to becoming the indispensable platform for different sections of society to connect and collaborate.
What Lies Ahead for ZM?
Statistics reveal that ZM stock has faced an abysmal performance during the last 12 months. That is quite surprising; given the fact that how the company has performed during the pandemic. But analysts believe that the strong competition to the company other market giants have caused its stock to suffer. In the long run, however, ZM stock is expected to depict strong performance.
