Zoom delivers strong Q2 results, raises outlook

CEO Eric Yuan noted the company's 96% year-over-year revenue growth during the quarter and increased free cash flow.

Workplace apps: What IT deploys vs. what the staff really uses As collaboration tools like Slack and Teams become more popular, collaboration across the enterprise will inevitably evolve, and companies need to be strategic about deployment.

Zoom posted better-than-expected second-quarter financial results on Thursday as well as a strong outlook but its shares still fell after hours.

The company reported second-quarter non-GAAP earnings of 2 cents per share on revenue of $145.8 million, up 96% from a year ago. Wall Street was looking for non-GAAP Q2 earnings of 1 cent per share on revenue of $130.3 million.

In terms of outlook, Zoom said third-quarter revenue will be between $155 million to $156 million with non-GAAP earnings of 3 cents a share. Wall Street was expecting third-quarter revenue of $140.4 million with a non-GAAP earnings loss of a penny per share. 

The company projected fiscal 2020 revenue of $587 million to $590 million with non-GAAP earnings of 18 cents a share to 19 cents a share. Shares of Zoom were down nearly 7% in aftermarket trading. 

Zoom said it had 66,300 customers with more than 10 employees and had 466 customers spending more than $100,000 for the trailing 12 months.

CEO Eric Yuan noted the company's 96% year-over-year revenue growth during the quarter and increased free cash flow. Zoom also announced that Verizon Business Group will market Zoom's unified communications platform to its global customers via a new partnership.