Shares of Zoom Video Communications Inc. ZM were sliding in premarket trading on Tuesday.
What Happened: The San Jose, California-based provider of unified communications platform reported late on Monday third-quarter non-GAAP earnings per share of $1.07, ahead of the 84-cent per share consensus estimate. Revenue climbed 5% year-over-year to $1.101 billion compared to the average analysts’ estimate of $1.1 billion.
Among the customer metrics, enterprise customers rose 14% to 209,300, and online average monthly churn dipped 60 basis points to 3.1%, while the trailing 12-month net dollar expansion rate for enterprise customers stood at 117%.
The company, however, issued mixed guidance for the fourth quarter and the full year, triggering concerns regarding a growth slowdown.
Zoom Video is the top holding of Cathie Wood-owned Ark Invest’s flagship Ark Innovation ETF ARKK and Ark Next Generation Internet ETF ARKW. The firm expects Zoom Video shares to skyrocket to $1,500 in 2026.
Price Action: In premarket trading on Tuesday, Zoom Video shares were sliding 9.28% to $72.81, according to Benzinga Pro data.
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