zoom video communications inc shares were down 18 to 19791 following the release of thirdquarter results the video communications platform company after the bell monday reported thirdquarter revenue of 105 billion up 35 and beating the factset consensus for 102 billion earnings per share were 111 beating the factset consensus of 109 the growth was primarily driven by strength in our direct and channel businesses which grew at twice the rate of our online business as well as improved churn in both online and direct segments chief financial officer kelly steckelberg said during the companys conference call zoom guided for fourthquarter revenue of 1051 billion to 1053 billion and adjusted eps between 106 and 107 jp morgan noted that the stock in afterhours trading monday was reacting to metrics like billings that have not been a good indicator of business health for zoom jp morgan said in its analyst note that revenue for the third quarter and guidance for fourth quarter came in above its expectations even as the expected fade of revenue from under 10 employee and personal use customers continued we believe this is the setup that points to bottoming in growth and reacceleration as we head through next fiscal year in q3 customers with more than 10 employees represented 66 of revenue up from 64 last quarter and 62 in q3 of last year these trends suggest that our customers with more than 10 employees are expanding their use of our platform adding more products and seats aligned with our gotomarket strategy ms steckelberg said during the conference call jp morgan noted fewer customer additions than expected and lowend customer revenue decline total customers with over 10 employees increased to 512100 in the quarter up 18 below our expectation of 518785 jp morgan said customers with 10 or fewer employees declined as a percentage of total revenue down to 34 from 38 one year ago and 36 last quarter the firm said in an analyst note needham pointed to churn and slowing revenue growth in the companys fewerthan 10 employee cohort we suspect headwinds in this segment could persist into f1q22 potentially beyond overshadowing solid progress in enterprise needham said in a note with topline growth still weighed down by weakening trends in the micro segment from pullforward and temporary pandemic business we look for a clear line of sight to the growth trough needham said needham said it suspects zoom could face additional quarters of high churn in this micro segment before the more attractive growth rate in its morethan 10 employee and enterprise segments becomes more evident mizuho securities usa reiterated its buy rating although the companys postpandemic durable growth profile remains somewhat unclear the companys multiple growth levers zoom phone zoom rooms video engagement center remain integral to hybrid work environments for the foreseeable future mizuho said zoom said that at the end of the third quarter it had 2507 customers contributing more than 100000 in trailing 12 months revenue up about 94 from the same quarter last fiscal year we expect larger company contributions to be the key to growth not the under 10 employee and personal use so this is a positive signal jp morgan said