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Investing.com – Zoom Video Communications reported Monday guidance that topped estimates on better-than-expected third-quarter results, but warned of higher churn in the final quarter of the year.
Zoom Video Communications Inc (NASDAQ:ZM) fell 5.6%, to $26.98.
The company said it expected to see increased churn in the fourth quarter when compared to historic churn levels due to a “higher percentage of customers who purchased monthly subscriptions.”
For the fourth quarter, the company sees earnings in the range of 77 cents to 79 cents on revenue of $806 million to $811 million, compared with consensus estimates earnings of 63 cents on revenue of $721.2 million.
For fiscal 2021, the company guided earnings in the range of $2.85 cents to $2.87 on revenue of $2.57 billion to $2.58 billion, above Wall Street estimates for earnings of $2.51 a share on revenue of $2.41 billion.
The company reported earnings 99 cents, up from 9 cents a year earlier, on revenue of $777.2 million, up 367%, beating estimates for earnings of 76 cents on revenue $693.4 million.
Growth in customers with more than 10 employees jumped 485% year-on-year, the company said. The number of customers contributing more than $100,000 in TTM revenue rose 136% year-over-year.
“We expect to strengthen our market position as we finish the fiscal year with an increased total revenue outlook of approximately $2.575 billion to $2.580 billion for fiscal year 2021, or approximately 314% increase year-over-year,” the company said.
