It’s no secret that the Covid-19 pandemic has changed some of our daily habits. Zoom’s (ZM) latest financials for its third fiscal quarter of the year suggest that the beloved videotelephony platform is one of the things that will stick. In Q3 of 2021, Zoom reported revenues of $1b — a 35% jump compared to last year. Net income surged from $198.64m to $340.4m — that’s a mindblowing 71% increase in just 12 months.
After the promising numbers were announced, Zoom’s shares skyrocketed more than 6% on the Nasdaq in after-hours trading. However, after an earning’s call with Wall Street analysts, the company’s shares tumbled 17%. Wait a second, how is that possible? Well, although Zoom posted some impressive Q3 results, worries surrounding the future of hybrid work and the actual availability of free cash flow cloud investors’ minds.
why it matters
What happened with Zoom's shares before and after the earnings call tells us that the company's post-pandemic durable growth prospects still remain iffy, to say the least. The coming months will be crucial in determining Zoom's actual survivability in a world free from a global pandemic.