Zoom Video Communications Inc (NASDAQ:ZM) shares remained on the front foot, up 0.5% in premarket, as upgraded guidance offset some disappointment over the video conferencing software platform’s third-quarter earnings.
For 2023, Zoom now expects revenue between $4.506 billion and $4.511 billion and adjusted earnings per share between $4.93 to $4.95.
This tops estimates of $4.49 billion and $4.66, respectively.
“Our strong performance across a number of metrics has enabled us to increase our full-year outlook for revenue and non-GAAP profitability, as well as for free cash flow, which we now expect to be in the range of $1.34 billion to $1.35 billion, up approximately 13% year over year," Zoom CEO Eric Yuan said in a statement.
Zoom also projected greater-than-expected profits for 4Q, expecting adjusted EPS in the range of $1.13 to $1.15, above estimates of $1.08.
Revenue is projected to be in the range of $1.125 billion to $1.13 billion, in line with estimates.
For the third quarter, which ended on October 31, Zoom posted revenue of $1.14 billion, above Wall Street estimates of $1.12 billion.
Adjusted earnings per share were $1.07, just shy of the expected $1.08.
Shares of Zoom gained 3.5% at $68.25 aftermarket Monday.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on X, formerly known as Twitter, @emilyjjarvie