Zoom Video returns to revenue growth in FQ2, stock rises more than 4% after hours
Kena Betancur
Zoom Video Communications (NASDAQ:ZM) on Monday reported FQ2 results that showed a return to revenue growth and raised its full fiscal year 2024 guidance, sending its class A shares up more than 4% after hours. 
ZM posted adjusted earnings per share of $1.34 which beat estimates by 28 cents. Revenue came in at $1.14B, beating expectations by $30M.
After seeing outsized growth during the COVID-19 pandemic on the back of massive demand for its video conferencing tools, Zoom (ZM) had seen its fortunes fall in the last few quarters amid a return to office and greater adoption of hybrid working models.
ZM's latest quarterly results showed a return to sales growth, with revenue rising 3.6% Y/Y compared to a 3% Y/Y rise in FQ1.
Taking a look at ZM's customer metrics, the company said it had about 218.1K Enterprise customers at the end of FQ2, versus around 215.9K at the end of FQ1.
ZM also said it had 3,672 customers contributing more than $100K in trailing 12 months revenue at the end of FQ2. That metric at the end of FQ1 was 3,580 customers.
Zoom (ZM) founder and top boss Eric Yuan in a statement touted the company's expanded platform with new artificial intelligence features like Zoom IQ Meeting Summary and Team Chat Compose, as well as Intelligent Director.
Turning to ZM's guidance, the company raised its full fiscal year 2024 revenue outlook to a range of $4.485B to $4.495B (consensus estimate of $4.48B) and adjusted earnings per share forecast to a range of $4.63 to $4.67 (consensus estimate of $4.32). The prior guidance ranges were revenue of $4.465B to $4.485B and adjusted earnings per share of $4.25 to $4.31. 
For FQ3, ZM sees revenue of $1.115B to $1.120B (consensus estimate of $1.12B) and adjusted earnings per share of $1.07 to $1.09 (consensus estimate of $1.03). 
Earlier in August, ZM told its employees to come back to office for a few days, further cementing an industry shift towards hybrid models of work.

More on Zoom Video

Zoom: Reiterate Neutral Rating Until Reported Results Show Growth Recovery
Zoom: Still A Duopoly
Zoom Video: Worrisome Enterprise Growth Forecast Offset By Profits And 25% Net Cash
Zoom: A Cheap Stock With Lots Of Cash
Seeking Alphaâs Quant Rating on Zoom Video
Earnings data for Zoom Video
Dividend for Zoom Video