ZM
Beat the numbers, lose the vibe
Zoom came in with a solid second quarter: revenue hit $1.28 billion, adjusted EPS landed at $1.55, and cash flow kept humming. On paper, that’s the kind of report that usually gets a polite golf clap from Wall Street.
But guidance is the real boss
The catch? Third-quarter profit guidance came in below estimates, and the market is acting like a toddler who heard the word “no.” Zoom also guided full-year revenue and earnings in line to slightly below expectations, even as enterprise demand and AI adoption keep doing the heavy lifting.
The good stuff is still there
A few bright spots worth noting if you’re an investor trying to separate drama from data:
- Enterprise revenue grew 7.8% and now makes up 62% of total sales
- Deferred revenue and remaining performance obligations both grew faster than expected
- Free cash flow guidance was raised, which is Wall Street’s version of a gold star
- The company kept buying back stock, with $3.4 billion repurchased under its existing plan
Big picture
Zoom is still generating cash and growing its enterprise business, but the market wants more than a decent quarter and a promising AI slide deck. When a stock is already mature, guidance matters more than the headline beat — and today, that guidance is why the shares are getting punished.