Zoom Communications Inc. (ZM) experienced a significant after-hours plunge of 5.01% following the release of its fourth-quarter financial results.
The video conferencing company reported adjusted earnings per share of $1.44 for the quarter, missing analyst estimates of $1.49. While revenue of $1.25 billion exceeded expectations, investors focused on the profit shortfall and the company's outlook for the current quarter.
Zoom forecast first-quarter adjusted earnings between $1.40 and $1.42 per share, which falls below Wall Street's estimate of $1.45. The company faces intense competition from rivals such as Microsoft Teams and Google Meet, and is grappling with slowing growth as pandemic-era work-from-home arrangements decline.