Zoom Stock Rises After Strong Quarterly Results

Zoom Video Communications experienced a significant boost in its stock price on Thursday, marking the largest increase since November 2022. Following the release of its second-quarter earnings, the company's shares rose by 13%, closing at $68.04. Despite this surge, Zoom's stock remains down 5.4% for the year, contrasting with a 17% gain in the Nasdaq index during the same period. The company reported a revenue increase of 2.1% year-over-year, reaching $1.16 billion, which surpassed analysts' expectations of $1.15 billion. Adjusted earnings per share also exceeded forecasts, coming in at $1.39 compared to the anticipated $1.21. For the full fiscal year, Zoom has raised its revenue guidance to between $4.63 billion and $4.64 billion, slightly above the previous estimate of $4.62 billion. Despite facing challenges in regaining growth momentum post-pandemic, Zoom has made strides in stabilizing its business by reducing customer churn and enhancing its contact center operations. CEO Eric Yuan highlighted the acquisition of the company's largest contact center customer to date during the quarter, indicating a positive trend in this segment. In a separate announcement, Zoom revealed that Chief Financial Officer Kelly Steckelberg will depart the company after the third-quarter results are reported. Yuan confirmed that an executive search firm has been engaged to find a successor for Steckelberg, who has been with Zoom since 2017.