Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    82.99
    +1.64 (+2.02%)
     
  • Gold

    2,241.00
    +28.30 (+1.28%)
     
  • Silver

    24.99
    +0.24 (+0.96%)
     
  • EUR/USD

    1.0790
    -0.0040 (-0.37%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2621
    -0.0017 (-0.14%)
     
  • USD/JPY

    151.3900
    +0.1440 (+0.10%)
     
  • Bitcoin USD

    70,683.81
    +1,788.59 (+2.60%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Zoom lowered Q4 expectations ‘given the macro environment’: Analyst

Mizuho Americas Managing Director Siti Panigrahi joins Yahoo Finance Live to discuss Zoom's third-quarter earnings results and the company's forward-looking guidance.

Video Transcript

RACHELLE AKUFFO: All right, well, meanwhile, Zoom video jumping after reporting third quarter earnings to the downside. We're seeing there for a deeper dive we're going to take into the company's latest financial results, Siti Panigrahi, Mizuho Americas managing director. Thank you for joining us this afternoon. So as we're seeing there, the stock to the downside. Earnings on point, a miss-- I mean revenue on point, a miss on earnings per share. What are your expectations when you're looking ahead to the earnings call?

SITI PANIGRAHI: Yes, so good to be here. And if you look at revenues, it is slightly above expectation. But that's mostly because of FX headwinds again. Otherwise growth would have been-- top line growth would have been 7%, but reported 5%.

But on earnings, actually, on a non-GAAP basis, they actually beat our expectation. They beat consensus expectation. As you see, adjusted EPS was $1.07, versus $0.83. I think right now, mostly is what you see the after-hours reaction mostly because of the Q4 guidance. They lowered Q4 expectation, given the macro environment, which I think is prudent in this kind of environment.

But what investors are mostly looking for what would be the next year, next fiscal year revenue growth. As you know, Zoom becoming, as it's going through a transition period right now. So if they lower that Q4 number now, everybody will expect that the growth rate for next year will slow down. That's probably why you are seeing more the reaction at this point. But we'll hear more from the management at their call.

Advertisement