Zoom Video Communications Inc (NASDAQ:ZM) stock fell 7.18% (As on May 23, 11:41:05 AM UTC-4, Source: Google Finance) after the company raised its full-year forecasts for revenue and profit even as growth winds down from a pandemic boom and business spending slows in a tough economy. The non-GAAP income from operations for the first quarter was $422.3 million, compared to non-GAAP income from operations of $399.6 million in the first quarter of fiscal year 2023. For the first quarter, non-GAAP operating margin was 38.2%. Non-GAAP net income for the first quarter was $353.3 million. Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of April 30, 2023 was $5.6 billion. Net cash provided by operating activities was $418.5 million for the first quarter, compared to $526.2 million in the first quarter of fiscal year 2023. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $396.7 million, compared to $501.1 million in the first quarter of fiscal year 2023. At the end of the first quarter of fiscal year 2024, Zoom had approximately 215,900 Enterprise customers, up 9% from the same quarter last fiscal year, a trailing 12-month net dollar expansion rate for Enterprise customers of 112%, 3,580 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 23% from the same quarter last fiscal year and online average monthly churn of 3.1% for Q1, down 50 bps from the same quarter last fiscal year.

ZM in the first quarter of FY 24 has reported the adjusted earnings per share of $1.16, beating the analysts’ estimates for the adjusted earnings per share of 99 cents, according to Refinitiv IBES. The company had reported 3 percent rise in the adjusted revenue to $1105.4 million in the first quarter of FY 24, beating the analysts’ estimates for revenue of $2.47 billion. Online revenue fell 8% to $473.4 million for the quarter ended April 30. Quarterly sales in its enterprise business rose 13% to $632 million.

Zoom raised its annual revenue forecast to between $4.47 billion and $4.49 billion, representing growth of just about 2% from last year. Its earlier forecast was for $4.44 billion to $4.46 billion. The company now expects annual adjusted profit per share between $4.25 and $4.31, compared with an earlier estimate of $4.11 to $4.18.

Zoom expects the online revenue to reach nearly $480 million in the second quarter and be relatively flat thereafter in fiscal 2024.