$Zoom Video Communications (ZM.US)$ shares were trading 8% lower just past 12.26 pm ET on Tuesday on the heels of the company's third-quarter financial results. The stock is off the lows of the session as analysts lift price targets following the print.
Zoom reported Q3 revenue of $1.18 billion, surpassing estimates of $1.16 billion. Earnings per share (EPS) came in at $1.38, beating the projected $1.31.
Total revenue was up 3.6% on a year-over-year basis. Enterprise revenue was up 5.8% year-over-year, while online revenue was flat year-over-year. Zoom, which changed its name from Zoom Video Communications to Zoom Communications on Monday, ended the quarter with approximately 192,400 enterprise customers. Online monthly average churn reached an all-time low of 2.7% in the quarter.
"This change reflects our evolution into an AI-first work platform for human connection and our vision for long-term growth," founder and CEO Eric Yuan said on a conference call, Benzinga reports.
Zoom expects fiscal fourth-quarter revenue to be in the range of $1.175 billion to $1.18 billion versus estimates of $1.17 billion. The company sees fourth-quarter adjusted earnings of $1.29 to $1.30 per share versus estimates of $1.28 per share.
Zoom expects full-year revenue of $4.656 billion to $4.661 billion versus estimates of $4.64 billion. Full-year earnings are expected to be between $5.41 and $5.43 per share versus estimates of $5.35 per share.
