Zoom released its earnings for the second quarter on Monday, beating analysts’ expectations. The company’s stock surged 5% after the closing bell, with its revenue guidance for the third quarter remaining flat.
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.”