Zoom Video Communications Inc. tumbled 7% in after-hours trading Wednesday after it reported better-than-expected results that did not meet lofty expectations.
Thus may end the teleconferencing company’s ZM, -0.57% recent spectacular stock run as one of the few tech companies to benefit from the coronavirus fears.
Zoom reported net income of $15.3 million, or 5 cents a share, in the fourth quarter, compared with net income of $1.2 million, or 1 cent a share, in the year-ago fourth quarter.
Revenue soared 78% to $188.3 million from $105.8 million a year ago.
Analysts surveyed by FactSet had expected a loss of 1 cent a share on sales of $176.5 million.
If there has been a tech stock immune to coronavirus, it’s been Zoom. In fact, it has thrived as more people are flock to its remote-work tools like videoconferencing as the virus continues to spread.
“In the last 30 days alone, average daily downloads are up 90% versus the prior 30-day period, with greater user engagement as evidenced by a 17% increase in user session per day and a 3% increase in average session length,” Bernstein analyst Zane Chrane wrote in a note to clients last week. Zoom has already added more new active users this year than it did in 2019, he added.
Shares of Zoom, which went public on April 18, 2019, are up 89% since then. The broader S&P 500 index SPX, +4.22% is up 12.9% in the past year.