Zoom's third quarter results top estimates

Zoom's third-quarter financial results topped market estimates but also revealed a slight decline in revenue growth.

The video conferencing software company reported third-quarter non-GAAP earnings of 9 cents per share on revenue of $166.6 million, up 85%. Last quarter, Zoom's revenue increased 96% year over year. Wall Street was looking for non-GAAP Q3 earnings of 3 cents per share on revenue of $154.86 million.

In terms of outlook, Zoom said fourth-quarter revenue will be between $175 million to $176 million with non-GAAP earnings of 7 cents a share. Analysts are expecting Q4 revenue of $165.15 million with a non-GAAP earnings of a 4 cents.

The company projected fiscal 2020 revenue to be between $609 million and $610 million with non-GAAP earnings of 27 cents a share. Shares of Zoom were down as much as 10% in after market trading. 

Zoom said it had 74,100 customers with more than 10 employees and had 546 customers spending more than $100,000 for the trailing 12 months.

CEO Eric Yuan noted that the company increased its free cash flow in the quarter and highlighted its customer growth rate.

"This execution also drove 67% growth in the number of customers with more than 10 employees and 97% growth of in the number of customers contributing more than $100,000 of TTM revenue," Yuan said.

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