Shares in Zoom Communications Inc. were down slightly in late trading today after the online communications company fell short of expectations with its first-quarter outlook despite reporting a beat in earnings in its fiscal 2025 fourth quarter.

For the quarter ended Jan. 31, Zoom reported adjusted earnings per share of $1.41, down from $1.42 in the same quarter of the previous fiscal year, on revenue of $1.18 billion, up 3.3% year-over-year. The adjusted earnings per share came in ahead of the $1.30 expected by analysts, while revenue was in line with the $1.18 billion expected.

Across its verticals, Zoom saw enterprise revenue in the quarter of $706.8 million, up 5.9% year-over-year, while online revenue came in at $477.3 million, down 0.4% year-over-year. As of the end of the quarter, Zoom had 192,600 enterprise customers, with a trailing-12-month net dollar expansion rate of 98%. The company also had 4,088 customers contributing more than $100,000 in trailing-12-month revenue, up 7.3% from the same quarter in the previous fiscal year.

Customer wins in the quarter include Amazon.com Inc.  Though Zoom notes in its investor presentation that Amazon was a fourth-quarter win, the deal wasn’t announced publicly until Feb. 20. Under the deal, Amazon is adopting Zoom as its main internal meeting app in place of Chime, Amazon’s in-house internal meeting software, which it will no longer support next year.

For its full fiscal year 2025, Zoom reported adjusted earnings per share of $3.21, up from $2.07 per share in fiscal year 2024, on revenue of $4.665 million, up 3.1% year-over-year.

“FY25 was an incredible year, marked by major advancements in AI, the evolution of Zoom into an AI-first work platform spanning Phone, Team Chat, Events, Docs and more, and strong momentum in Contact Center and Workvivo,” founder and Chief Executive Eric Yuan said in prepared remarks to investors. “A key highlight has been the rapid adoption of our AI capabilities — growth in monthly active users of Zoom AI Companion accelerated to 68% quarter over quarter, demonstrating the real value AI is providing customers.”

For its fiscal 2026 first quarter, Zoom expects adjusted earnings per share of $1.29 to $1.31 on revenue of $1.16 billion to $1.17 billion. Both were misses at the midpoint, though not by much, as analysts were expecting $1.31 per share on revenue of $1.18 billion.

For the full year, the company expects adjusted earnings per share of $5.34 to $5.37 on revenue of $4.79 billion to $4.8 billion. Analysts were expecting $5.45 per share on revenue of $4.66 billion.

Image: Zoom