Zoom exceeds expectations with another quarter of single-digit growth.

• Despite analysts' expectations, Zoom exceeded its profit and revenue targets in the quarter, prompting executives to raise the company's full-year forecast.
• The company started selling options for single-use webinars during the quarter.

On Monday, video calling software maker shares dropped about 1% in extended trading after announcing strong fiscal third-quarter results and providing guidance in line with expectations.

Here's how the company did in comparison with LSEG consensus:

• Earnings per share: $1.38 adjusted vs. $1.31 expected
• Revenue: $1.18 billion vs. $1.16 billion expected

In the quarter that ended on Oct. 31, Zoom's revenue grew by approximately 4% year over year, according to a statement. Despite experiencing significant growth in 2020 and 2021 due to the pandemic, Zoom has been increasing revenue in the single digits for the past two and a half years.

The net income for the quarter was $207.1 million, or 66 cents per share, which represents a 44.9% increase from the previous year's quarter, when the net income was $141.2 million, or 45 cents per share.

In the quarter, the company had 192,400 enterprise customers, an increase of 800 from the previous quarter.

Zoom expects to report adjusted earnings per share of $1.29 to $1.30 in the fiscal fourth quarter, on revenue of $1.175 billion to $1.180 billion. Analysts surveyed by LSEG anticipate earnings per share of $1.29 and revenue of $1.17 billion.

Zoom expects to generate revenue of $4.656 billion to $4.661 billion in the 2025 fiscal year, with adjusted earnings per share ranging from $5.41 to $5.43. This implies a growth rate of approximately 3% in the middle of the revenue range.

In August, Zoom stated that it was seeking $5.29 to $5.32 per share and revenue between $4.630 billion and $4.640 billion, while LSEG's consensus was $5.35 per share on revenue of $4.64 billion.

In the first half of 2025, Zoom announced that it would launch a premium Custom AI Companion that could connect to corporate glossaries and services such as and. Additionally, Zoom began offering single-use webinar options with a capacity for up to 1 million attendees.

By Monday's close, Zoom stock had increased by approximately 24% this year, compared to the S&P 500 index's gain of 25%.

Zoom Communications Inc. is the new corporate name of the company that also announced a change in its name from Zoom Video Communications.

Analysts will receive a conference call from executives to discuss the results starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

Despite its weak growth, MAI Capital's Chris Grisanti recommends that investors take another look at Zoom.