Shares of video communications company Zoom Video (ZM) were falling more than 6% after hours Thursday despite the company reporting second quarter results ahead of analyst expectations.
The San Jose-based company reported a 96% jump in second quarter revenue to $145.8 million on non-GAAP earnings of 8 cents per share. Analysts were expecting the company to report revenue of $130.31 million on earnings of a penny per share.
The company counted 66,300 customers with more than 10 employees, a 78% year over year increase, with 466 customers contributing more than $100,000 in trailing 12 months revenue, a 104% increase.
Zoom also issued third quarter revenue guidance between $155 million and $156 million with earnings of 3 cents per share. Analysts are expecting the company to report revenue of $140 million with a net loss of 1 cent per share.
Zoom shares went into earnings up more than 250% from the IPO price of $36 when it debuted in April.
"Zoom delivers happiness to our customers by providing a frictionless unified communications platform capable of transforming how teams communicate and collaborate," CEO Eric Yuan said in a press release. "I am proud that we continue to build trust and create value for customers as evidenced by our strong combination of total revenue growth of 96% with increased profitability and free cash flow in Q2."