Zoom Video Communications Reports Strong Q3 Earnings, Beating Estimates
Zoom Video Communications (ZM) delivered a robust performance in its fiscal third quarter, surpassing Wall Street expectations on both top and bottom lines. Earnings per share reached $1.52, exceeding the consensus estimate of $1.44, while revenue climbed to $1.23 billion, ahead of the projected $1.21 billion.
Enterprise customer growth of 6.1% fueled the results, alongside a 41.2% operating margin and $629 million in operating cash flow. The company's financial health appears solid, though the broader market implications for tech stocks remain nuanced amid shifting macroeconomic conditions.
Analysts maintain a Moderate Buy rating on ZM stock, with an average price target suggesting 16.6% upside potential. The earnings beat may reinforce investor confidence in SaaS business models, though cryptocurrency markets showed no direct reaction to the news.
