What's Going On With Zoom Stock Tuesday?

Zoom Video Communications Inc ZM shares initially traded higher late Monday on the company's third-quarter financial results, but have since pulled back. Here's a look at the key metrics from the quarter. 

• Q3 Revenue: $1.14 billion beat estimates of $1.12 billion
• Q3 EPS: $1.29 beat estimates of $1.08

Enterprise revenue was up 7.5% year-over-year. Operating margin came in at 14.9% and operating cash flow totaled $493.2 million, which was up 67% year-over-year.

Zoom ended the quarter with approximately 219,700 enterprise customers, up 5% year-over-year. 3,731 of those customers were contributing more than $100,000 in trailing 12 months revenue, up approximately 13.5%.

"In Q3, revenue came in ahead of guidance as we bolstered Zoom's all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion and continued to evolve our customer and employee engagement solutions," said Eric Yuan, founder and CEO of Zoom.

Guidance: Zoom said it expects fourth-quarter revenue to be between $1.125 billion and $1.13 billion versus estimates of $1.13 billion. The company expects fourth-quarter earnings to be between $1.13 and $1.15 per share versus estimates of $1.00 per share. 

Full-year revenue is expected to be between $4.506 billion and $4.511 billion versus estimates of $4.5 billion. Full-year earnings are expected to be between $4.93 and $4.95 per share versus estimates of $4.27 per share.

"Our strong performance across a number of metrics has enabled us to increase our full year outlook for revenue and non-GAAP profitability, as well as for free cash flow," Yuan said.

Following the print, Barclays analyst Ryan Macwilliams maintained Zoom with an Equal-Weight and lowered the price target from $80 to $70. Rosenblatt analyst Catharine Trebnick reiterated Zoom with a Neutral rating and maintained a price target of $75.

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ZM Price Action: Zoom shares initially traded up more than 6% after hours, but were down 1.67% at $64.85 at the time of writing, per Benzinga Pro.

Photo: courtesy of Zoom.