Zoom Is Becoming Boring, But That's Good
Fewer distractions and reduced stock volatility following a wild 2020 are allowing the videoconferencing company to focus on new products and features that will drive growth.
Zoom shares are no longer skyrocketing, but the business is doing just fine.
Photographer: Sascha Steinbach/Pool/AFP via Getty Images
Zoom Video Communications Inc. is becoming less exciting. That will serve the videoconferencing leader just fine.
Late Tuesday, the company posted its second consecutive quarter of modest outperformance. It generated April-quarter revenue of $956 million, above the $910 million Bloomberg consensus and up a healthy 191% from the prior year. Zoom also projected a sales range of $985 million to $990 million for the current quarter, which is higher than the $942 million average analyst estimate. Following the report, its share price rallied about 2% in after-hours trading; it gave back those gains in early trading Wednesday.