Zoom’s Share Price Plunge to $341.57 as Investors Dumps Holdings

Zoom Shares plunged on Wednesday despite a strong fourth-quarter earnings report filed on Monday.

The video calling software maker posted earnings per share of $1.22, against 79 cents per share predicted by analysts.

Revenue stood at $882.5 million, more than the $811.8 million expected by analysts, according to Refinitiv.

On a yearly basis, revenue grew by 369 percent in the fourth quarter that ended Jan.31, 2021, slightly more than the 367 percent increase recorded in the previous quarter. Thanks to lockdown that forced many people to adopt Zoom globally following the COVID-19 outbreak in China.

The company expanded its gross margin from 66.7 percent achieved in the third quarter to 69.7 percent in the fourth quarter. The slight increase was as a result of the drop in audio usage due to the holidays, stated Kelly Steckelberg, Finance Chief, Zoom.

Zoom ended the fourth quarter with $4.24 billion in cash, cash equivalents and marketable securities, up from $1.87 billion recorded in the third quarter.

According to Steckelberg, the company is looking to acquire companies with its huge cash, however, she said “We just haven’t quite found the right match yet.”

The company added 467,100 customers with more than 10 employees during the period under review. That represents a 470 percent increase over the same quarter of last year.

1,644 customers contributed $100,000 in trailing 12 months revenue, up approximately 156 percent increase from the same period of last year.

Why Zoom Shares Plunge Despite Strong Performance

Global investors are no longer keen on Zoom shares given the slow down in the COVID-19 crisis and better COVID-19 vaccine distribution. Stock investors are predicting a slow down in growth in 2022 fiscal year, especially with businesses reopening and people expected to resume normal operations later in 2021.

Also, the company’s projection for the 2022 fiscal year revealed that management only sees 42 percent growth in revenue to $3.77 billion and adjusted earnings per share of $3.62, an 8 percent increase, against the 326 percent increase in revenue posted in 2021 fiscal year.

Zoom’s share price plunged from $437.01 on Tuesday to $341.57 on Wednesday as investors continue to whine down on their holdings.

Eric Yuan, the company founder and Chief Executive Officer, remains optimistic ahead of 2022.

He said, “As we enter FY2022, we believe we are well-positioned for strong growth with our innovative video communications platform, on which our customers can build, run, and grow their businesses; our globally recognized brand; and a team ever focused on delivering happiness to our customers.”

Japaul, Champion, Others Weigh on Nigeria’s Stock Exchange

The Nigerian Stock Exchange closed in the red again on Wednesday as bearish sentiment persists across the board.

Investors traded 244.342 million shares estimated at N4.128 billion in 4,714 transactions during the trading hours of Wednesday.

The Nigerian Stock Exchange All-Share Index depreciated by 0.44 percent to settle at 39,522.06 index points. While the market value of listed stocks closed lower at N20.678 trillion.

Japaul led the losers’ table with a 10 percent decline. This was followed by NEM Insurance Plc’s 9.91 percent decline. See the details below.

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11 Plc Extends the Dissenting Period for Delist

11 Plc on Tuesday said it has extended the one-month period given to shareholders to elect to accept the Exit Consideration by another 10 working days.

The company disclosed in a statement released on the Nigerian Stock Exchange (NSE).

11 Plc formerly known as Mobil Oil Nigeria Plc had highlighted plans to delist from the Nigerian Stock Exchange on 9th February 2021, saying the company’s shareholders have between February 1, 2021 to March 1, 2021 to accept the Exit Consideration of the Company.

According to the company, the extension was to allow shareholders enough time to make their decision and ensure a fair process.

Therefore, shareholders that still wish to dissent were asked to forward their completed election forms to the Registrar- Greenwich Registrars & Data Solutions Limited located at 274 Murtala Muhammed Way, Alagomeji-Yaba on or before Monday, 15th of Match 2021.

11 Plc added that “It is however necessary to reiterate that shareholders that intend to remain members of the company are free to remain and may decide to keep their shares (which will be tradable on the NASD OTC platform).”

The company plans to purchase the interest of dissenting shareholders at N213.90 per share, the highest amount the company shares traded in the last six months.