Zoom posts decent quarterly results but stock falls
The company’s stocks plunged as much as 10% in a knee-jerk reaction to the report
Stocks impacted: Zoom Video Communications Inc. (ZM)
Zoom reported its fourth-quarter earnings after the bell on Wednesday. The videoconferencing software company recorded revenue of $188.3 million and adjusted per-share profit of $0.15. The numbers were ahead of expectations, including $176.55 million in revenue and earnings per share of $0.07. Revenue grew 78% on an annualized basis in the fourth quarter of the 2020 fiscal year. The company’s stocks plunged as much as 10% in a knee-jerk reaction to the report but cut losses to 5% afterwards. The negative reaction was probably due to the guidance that did not meet lofty expectations while quarterly results were better than expected. Zoom expects gross margins to be at the lower end of its 80% to 82% long-term target for gross margin in the 2021 fiscal year.
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