🎥Zoom on the rise: strong results and new ambitions!

Zoom Communications $ZM surprised analysts with its third-quarter results, which it announced on Monday after the markets closed!

Sales rose by 4 % to $1.18 billion, which is more than expected. Net income jumped by 47 % to $207.1 million. (66 cents per share). This growth was primarily driven by the expansion of the company's enterprise packages to include cutting-edge artificial intelligence features and a focus on large corporate clients. 🤝

Zoom is changing its approach and its identity with it - the word "video" is disappearing from its name to reflect the company's broader focus. The company is no longer limiting itself to video conferencing, but adding other tools: AI assistants, enterprise phone systems and contact centers. According to the CEO Eric Yuan this transformation reflects the company's long-term ambitions. 🌍

Key figures:
✅ Revenue from corporate customers increased by 6 % to $699 million.
✅ Number of large customers (spending over $100k annually) increased by 7,1 % to 3,995 companies.

The full-year outlook is also now more optimistic:
Revenues: up USD 4.66 billion.
Earnings per share: up to $5.43.

📊 The company also announced that it will add to its share repurchase program $1.2 billion, increasing the total repurchase budget to USD 2 billion. This is a clear signal that Zoom believes in its growth!

📉 But not everything is rosy: Despite the strong numbers, the company's stock weakened after the results were released. The outlook for the next quarter suggests only modest revenue growth (only 2.7%). Another problem is the outflow of smaller customers (consumers and small businesses), where margins tend to be higher. However, this segment has seen the lowest outflows ever, which is a sign of stabilisation.

Since the beginning of the year, the stock has gained more than 23 %, but are still below the peaks the company reached during the pandemic. Shares traded as high as $568.34.

Zoom is transforming itself from a video conferencing company into a provider of end-to-end enterprise solutions. A growth strategy based on innovation in artificial intelligence and expansion of its offerings is bringing benefits, but the transition is not without risk.

Do you have Zoom stock in your portfolio? What's your opinion of this company that experienced its boom during the covid pandemic when most people worked from home?