What's Going On With Zoom Video Shares Monday Afternoon?

Shares of Zoom Video Communications Inc. ZM traded lower Monday afternoon following better-than-expected second quarter results but third-quarter earnings guidance that might have disappointed investors.

The company reported quarterly adjusted earnings of $1.36 per share. The figure beat the analyst consensus estimate of $1.16 per share.

Sales totaled $1.02 billion, better than the $991 million estimate expected by analysts. Sales were up about 54 percent on a year-over-year basis.

"In Q2, we achieved our first billion dollar revenue quarter while delivering strong profitability and cash flow," said Zoom founder and CEO, Eric S. Yuan. "Q2 also marked several milestones on our expansion beyond the UC platform. We launched Zoom Apps, bringing over 50 apps directly into the Zoom experience, and Zoom Events, an all-in-one digital events service. Today we are a global brand counting over half a million customers with more than 10 employees, which we believe positions us extremely well to support organizations and individuals as they look to reimagine work, communications, and collaboration."

Zoom said it expects third-quarter earnings between $1.07 and $1.08 per share, below the analyst consensus estimate around $1.09 per share. Next quarter sales expected in the range of $1.015 billion and $1.02 billion. Analysts expect quarterly sales around $1.01 billion.

The company sees fiscal year 2022 earnings per share of $4.75 and $4.79 on sales of $4.005 billion and $4.015 billion. Analysts expect FY22 EPS of $4.67 on sales of $4.01 billion.

Zoom hosted its second-quarter earnings conference call at 5 p.m. EDT Monday afternoon.

Zoom shares were down 11 percent to around $307.04 at last check.