Zoom Video Communications (NASDAQ: ZM) beat earning estimates in its third quarter report, however shares fell 5% in morning trading Monday. Investors are continuously weary of the company’s possible downfall as COVID-19 vaccine’s report positive news.
Within its Q3 report the company recorded earnings of USD0.99 per share in comparison to the expected USD0.76 a share. Revenue amounted to USD777.2 Million, higher than analysts anticipated USD694 Million.
As the coronavirus pandemic has driven people to complete their daily tasks such as work, school and even social interactions through zoom, revenue skyrocketed 367% throughout the quarter ending October 31. The previous quarter recorded a 355% revenue increase and in the one before that, revenue rose 169%.
The company has released its Q4 forecast which predicts a revenue of anywhere from USD806 Million and USD811 Million. Earnings per share are estimated to be between USD0.77 and USD0.79.
At the beginning of 2020, Zoom’s stock price was USD71.90. However, amid the rapid changes of the pandemic, the stock rose to USD406.93 as of Tuesday.
Nevertheless, with signs of improvement among Pfizer and BioNtech’s coronavirus vaccines, the stock has tumbled continuously. Zoom went from trading USD500.11 on November 6 to USD376.01 on November 10.
“We continue to see Zoom as benefiting even in a post-COVID-19 scenario, as its video conferencing solution has become a critical component of how companies communicate during COVID-19, while the pandemic has also increased the recognition of its long-term importance in the new normal, post-pandemic workplace that will emerge over the coming years,” Mizuho Securities’ Siti Panigrahi wrote. He added that the company is well equipped for the future.