Zoom's CEO explained the growth prospects he sees for the company after the stock dipped on third quarter earnings report that showed slowing growth

• Zoom shares plummeted after reporting third-quarter earnings that beat expectations but showed overall slowing growth.
• It reported third-quarter revenue of $166.6 million, growing 85% from a year prior, but that was lower than the 96% revenue growth it saw last quarter.
• On an earnings call with analysts, CEO Eric Yuan said he sees opportunities for Zoom to expand internationally and leverage new products to keep existing customers happy.
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Zoom shares slid as much as 10% in after-hours trading upon reporting third-quarter earnings that beat expectations but showed overall slowing growth. On an earnings call with analysts, CEO Eric Yuan laid out the opportunities he sees in international expansion, the public sector and enterprise, but the stock didn't recover its losses.

Zoom's success in the quarter was largely due to its "ability to attract new customers of all sizes and across industry segments and geographies," Yuan said on the company's earnings call.

Zoom reported revenue of $166.6 million for the third quarter, growing by 85% from a year prior. That was however less than the 96% revenue growth it saw last quarter.

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Here is what Zoom reported:

• Revenue: $166.6 million. Analysts were expecting $ 155.8 million.
• Earnings per share (adjusted): $0.09. Analysts predicted $0.03.
• Revenue (next quarter): $175.0 million and $176.0 million estimated. Analysts had predicted $165.7 million.
• Earnings per share (adjusted, next quarter): $0.07 estimated. Analysts predicted $0.04.
• Revenue (FY 2020): $609 million to $610 million estimated.
• Earnings per share (adjusted, FY 2020): $0.27 estimated.

Although Zoom's growth rate is slower than previous quarters, Yuan sees opportunity to grow internationally and use new products like Zoom phone to make sure their existing customers stay happy.

When asked on the earnings call about expanding into India and China in the next few years, Yuan said he doesn't think it will take years to get their product into the market there, it will be months. In fact, he said it is imperative that it will happen quickly rather than in several years. He said Zoom can already support a local Chinese number on its platform so the company is making progress in those markets.

Additionally, he said the European and Asia-Pacific markets are ready to adopt the kind of video communication tools Zoom offers. In order to truly ramp up in those regions, Zoom has to hire more people, he added.

Yuan also stressed the importance of keeping Zoom's existing customers happy. One way its doing this is with its new product Zoom phone. Yuan said a lot of their existing customers said they were still using phone services in addition to Zoom and wanted a more seamless option that made both voice calling and video calling an option.

"We started from video conferencing," Yuan said, adding, "We still have to be the number one market leader" in that sector. In addition to that he said the company is focusing on making a more connected experience between video and voice calling and building more integrations with other service providers.

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