Zoom shares slide 10% on slowing growth

Zoom Video logs first billion-dollar quarter, but the stock is still falling

Zoom shares fell 10% in extended trading on Monday after the video-calling software maker reported second-quarter fiscal earnings that beat analysts’ expectations but showed slow growth from the previous quarter.

The earnings forecast comes in slightly below estimates as Zoom’s sales growth rates have dropped to new lows compared to the huge jump in the first days of the COVID-19 pandemic

Zoom Video Communications Inc. released its billion-dollar first quarter on Monday, but the videoconferencing company’s guidance sent shares down more than 10% in after-hours trading.

Zoom ZM, +1.96% reported fiscal second quarter net income of $316.9 million, or $1.04 per share, compared to net income of $185.7 million, or 63 cents per share, for the quarter. from the previous year. The company’s adjusted net income was $1.36 per share. Revenue soared 54% to $1.02 billion from $663.5 million a year ago.

Analysts surveyed by FactSet had expected adjusted net income of $1.16 per share on revenue of $991 million.