Revenue for Q2 was $1.14 billion, beating Wall Street estimates of $1.11 billion. Adjusted earnings per share stood at $1.34, outpacing expectations of $1.05 per share. The number of enterprise subscribers fell short of expectations, however, at 218,000 compared to an expected 219,350.

As the video conference software company faces the challenge of rising competition, CEO Eric Yuan defended Zoom’s pricing power. “n terms of pricing power, most … businesses, they still view employee experience as the No. 1,” Yuan declared. “Most of the customers we’re talking with, they really appreciate the value and ease of use and quality of the Zoom service.”

The post Zoom Stock Surges After Beating Earnings Estimates appeared first on theprimarymarket.com.

Tomb, a high-profile former executive for Google, took the position in June and was tasked to improve the declining demand that Zoom has been experiencing in the post-pandemic period. He was prominently featured on earnings calls and reportedly had a big say in sales operations.

The reason for Tomb’s firing remains unknown, although the company designated it as “termination without cause” in a filing made earlier in the week. Several analysts didn’t like the move at all, believing that it might indicate underlying issues in the company’s management.

Zoom had a rough 2022, seeing its business rapidly slowing down compared to years prior. As part of the efforts to improve its position, the company decided to lay off 15% of its workforce, among other moves.

Zoom’s latest quarterly report saw some improvements, showing $1.22 in adjusted earnings per share, compared to $0.81 estimated by Wall Street. The company’s revenue also beat expectations, coming in at $1.12 billion versus the $1.10 billion expected, but recorded a $104 million net loss, the first time this has happened since 2018. 

The post Zoom Fires President Greg Tomb in a Surprising Move, Causes Concerns Among Investors appeared first on theprimarymarket.com.

Over the last couple years, Zoom emerged as a major player in the social video streaming industry. With the COVID-19 pandemic causing companies to work remotely, Zoom’s product was used exponentially more. It became a staple of work culture, and company growth was through the charts.

However, it seems as though things have changed slightly as of late—at least according to Citi.

Citi research analyst Tyler Radke had this to say about Zoom’s perceived decline: “Zoom’s post-COVID growth trajectory has always been more challenging, given pull-forward dynamics, but we see new hurdles to sustaining growth including rising competition (Microsoft/Teams), macro-related weakness hitting small businesses and less critical spending categories and margin risk.”

As Radke notes, things aren’t the same for Zoom prospects now that many companies have either gone back to working at the office fully or implemented a hybrid model.

As a result, Radke cut his rating for Zoom’s stock from Neutral to Sell, calling the stock a “high risk”.

To make matters worse for the video streaming company, its shares dropped by more than 3% in pre-market trading. While this isn’t the end of the world, it’s still something to look out for if you have money invested in the company.

The post Citi Cuts Zoom Stock, Unimpressed With Recent Results appeared first on theprimarymarket.com.

Revenue for Q2 was $1.14 billion, beating Wall Street estimates of $1.11 billion. Adjusted earnings per share stood at $1.34, outpacing expectations of $1.05 per share. The number of enterprise subscribers fell short of expectations, however, at 218,000 compared to an expected 219,350.

As the video conference software company faces the challenge of rising competition, CEO Eric Yuan defended Zoom’s pricing power. “n terms of pricing power, most … businesses, they still view employee experience as the No. 1,” Yuan declared. “Most of the customers we’re talking with, they really appreciate the value and ease of use and quality of the Zoom service.”

The post Zoom Stock Surges After Beating Earnings Estimates appeared first on theprimarymarket.com.

Tomb, a high-profile former executive for Google, took the position in June and was tasked to improve the declining demand that Zoom has been experiencing in the post-pandemic period. He was prominently featured on earnings calls and reportedly had a big say in sales operations.

The reason for Tomb’s firing remains unknown, although the company designated it as “termination without cause” in a filing made earlier in the week. Several analysts didn’t like the move at all, believing that it might indicate underlying issues in the company’s management.

Zoom had a rough 2022, seeing its business rapidly slowing down compared to years prior. As part of the efforts to improve its position, the company decided to lay off 15% of its workforce, among other moves.

Zoom’s latest quarterly report saw some improvements, showing $1.22 in adjusted earnings per share, compared to $0.81 estimated by Wall Street. The company’s revenue also beat expectations, coming in at $1.12 billion versus the $1.10 billion expected, but recorded a $104 million net loss, the first time this has happened since 2018. 

The post Zoom Fires President Greg Tomb in a Surprising Move, Causes Concerns Among Investors appeared first on theprimarymarket.com.

Over the last couple years, Zoom emerged as a major player in the social video streaming industry. With the COVID-19 pandemic causing companies to work remotely, Zoom’s product was used exponentially more. It became a staple of work culture, and company growth was through the charts.

However, it seems as though things have changed slightly as of late—at least according to Citi.

Citi research analyst Tyler Radke had this to say about Zoom’s perceived decline: “Zoom’s post-COVID growth trajectory has always been more challenging, given pull-forward dynamics, but we see new hurdles to sustaining growth including rising competition (Microsoft/Teams), macro-related weakness hitting small businesses and less critical spending categories and margin risk.”

As Radke notes, things aren’t the same for Zoom prospects now that many companies have either gone back to working at the office fully or implemented a hybrid model.

As a result, Radke cut his rating for Zoom’s stock from Neutral to Sell, calling the stock a “high risk”.

To make matters worse for the video streaming company, its shares dropped by more than 3% in pre-market trading. While this isn’t the end of the world, it’s still something to look out for if you have money invested in the company.

The post Citi Cuts Zoom Stock, Unimpressed With Recent Results appeared first on theprimarymarket.com.