Zoom Video Communications Inc. ZM, -9.95% shares slumped 11% in after-hours trading Thursday after the remote-conferencing service reported third-quarter financial results that indicate its revenue growth rate is cooling.
Zoom reported net income of $2.2 million, or 1 cent a share, compared with a loss of $598,000, or 1 cent a share in the year-ago period. Revenue grew 85% to $166.6 million from $90.1 million a year ago. In the previous quarter, revenue had grown 96%. Analysts surveyed by FactSet had expected a loss of 3 cents a share on revenue of $156 million. Zoom went public on April 18 at $62 a share, and hit a closing high of $102.77 on June 12. The S&P 500 index SPX, +0.91% has gained 24.4% this year.