Zoom Gives Lukewarm Outlook Despite Expanded Product Line

Revenue will be about $1.28 billion in the quarter ending in October, Zoom said Tuesday in a statement. Profit, excluding some items, will be about $1.47 per share, which fell short of the average estimate of $1.50, according to data compiled by Bloomberg.

The maker of a hit videoconferencing tool, Zoom has worked to offer more office collaboration products, such as corporate phone systems and software for contact centers. Many of these tools include artificial intelligence features, which can be expensive to provide because they rely on models from firms like Anthropic PBC.

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The shares declined about 2% in extended trading after closing at $100.92 in New York. Zoom's stock had climbed 17% this year over optimism for its newer products and the value of an Anthropic stake stemming from a 2023 partnership.

Average monthly churn among individuals and small businesses in the quarter was 2.9%, about the same as the prior quarter. While this metric has been steady in the past year, these consumers have become a smaller part of Zoom's business as the company has turned its focus to larger, corporate clients.

For the quarter ended July 31, sales climbed 4.9% to $1.28 billion. That just topped analysts' average estimate of $1.27 billion. Profit, excluding some items, was $1.55 a share, compared with analysts' average estimate of $1.48.

Enterprise revenue increased 7.8% to $787.5 million.

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