It has been about a month since the last earnings report for Zoom Video Communications (NASDAQ: ZM). Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Zoom Video due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Zoom Q2 Earnings Beat, Enterprise Customers Drive Revenues
Zoom's second-quarter fiscal 2025 adjusted earnings of $1.39 per share beat the Zacks Consensus Estimate by 14.88% and increased 3.73% year over year.
Revenues of $1.16 billion beat the consensus mark by 1.22% and increased 2.09% year over year on strong growth from Enterprise customers. Adjusting for foreign currency impact, revenues in constant currency were $1.166 billion, up 2.4% year over year.
Quarter Details
Enterprise revenues were $682.8 million, up 3.5% year over year and represented 58.7% of total revenues. Customers contributing more than $100,000 in revenues in the trailing 12 months grew 7% to 3,933. These customers accounted for 31% of revenues, up from 29% in the year-ago quarter.
In the fiscal second quarter, as part of an effort to improve the customer experience and drive greater efficiency in operations, the company transitioned 26,800 Enterprise customers with low annualized revenue run rate to Online.
The number of Enterprise customers at the end of the second quarter, after accounting for the transition, was approximately 191,600.
The company reported a trailing 12-month ...
