zoom video communications inc executives increased their annual profit forecast after an earnings beat monday but undershot expectations for the fourth quarter leading to shares seesawing in late trading zoom zm reported fiscal thirdquarter net income of 484 million or 16 cents a share on revenue of 11 billion up from 105 billion a year ago after adjusting for stock compensation and other effects zoom reported earnings of 107 a share down from 111 a share last year but easily topping analysts’ expectations analysts surveyed by factset had on average expected adjusted net income of 83 cents a share on revenue of 1094 billion zoom executives said they now expect fullyear adjusted earnings of 391 to 394 a share on revenue of 437 billion to 438 billion after previously targeting adjusted earnings of 366 to 369 a share on revenue of 439 to 44 billion for the fourth quarter they expect 75 to 78 cents a share on revenue of roughly 11 billion while analysts on average are projecting 81 cents a share on sales of 11 billion according to factset “our customers are increasingly looking to zoom to help them enable flexible work environments and empower authentic connections and collaboration” chief executive eric yuan said in a statement “proactively addressing these needs with zoom’s expanding platform continues to be our focus in this dynamic environment” zoom’s stock rose about 4 following release of the results but then slid back to a decline in extended trading after closing with a 17 decline at 8026 zoom’s stock has withered 56 this year as the broader sp 500 index spx has slid 17 in 2022 zoom suggesting belttightening companies are finding a renewed reliance on videoconferencing as they consolidate real estate holdings and lay off workers but continues to fend off competition from microsoft corp’s msft teams cisco systems inc’s csco webex alphabet inc’s googl goog google salesforce inc’s crm slack and many other corners the continuing challenges for zoom were delineated in two contrasting notes issued by financial analysts on friday in forecasting “near flattish revenue growth next year” citi research analyst tyler radke outlined numerous obstacles zoom faces in the postcovid recovery tightening it budgets and a weaker macro outlook keep will keep new small business customer acquisitions “low and churn elevated” he said in a nov 18 note ” we see the hurdles from last quarter holding with rising competition msftteams macrorelated weakness and further margin risk from mix shift” radke wrote “though phone is gaining traction we believe the headwinds above will more than offset new product strength and create downside risk to guidance and consensus estimates post quarter” bernstein analyst peter weed who attended zoom’s recent investor day has a more sanguine view of zoom’s immediate future he believes its new zoom calendar and email are simple consumerfriendly features that will lead to financial riches without taking on google or microsoft in the enterprise space