Zoom Video Communications Inc (NASDAQ:ZM) stock fell 1.05% (As on November 21, 11:21:23 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 24. Enterprise revenue was $660.6 million, up 7.5% year over year, and Online revenue was $476.1 million, down 2.4% year over year. The non-GAAP income from operations for the third quarter was $447.1 million, compared to non-GAAP income from operations of $380.9 million in the third quarter of fiscal year 2023. For the third quarter, non-GAAP operating margin was 39.3%. Net cash provided by operating activities was $493.2 million for the third quarter, compared to $295.3 million in the third quarter of fiscal year 2023, up 67.0% year over year. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $453.2 million, compared to $272.6 million in the third quarter of fiscal year 2023, up 66.2% year over year. Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of October 31, 2023 was $6.5 billion.
Moreover, at the end of the third quarter of fiscal year 2024, Zoom had approximately 219,700 Enterprise customers, up 5.0% from the same quarter last fiscal year, a trailing 12-month net dollar expansion rate for Enterprise customers of 105%, 3,731 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 13.5% from the same quarter last fiscal year, Online average monthly churn of 3.0% for the third quarter, down 10 bps from the same quarter last fiscal year and the percentage of total Online MRR from Online customers with a continual term of service of at least 16 months was 73.2%, up 250 bps year over year.
ZM in the third quarter of FY 24 has reported the adjusted earnings per share of $1.29, beating the analysts’ estimates for the adjusted earnings per share of $1.08, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 3.2 percent to $1.14 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $1.12 billion.
For the current quarter ending in January, Zoom Video expects its per-share earnings to range from $1.13 to $1.15. The company said it expects revenue to be in the range of $1.13 billion for the fiscal fourth quarter.
Zoom Video expects full-year earnings to be in the range of $4.93 to $4.95 per share, with revenue expected to be $4.51 billion.