Zoom Falls 6% as Soft Q3 Profit Guidance Overshadows a Double Beat; HubSpot and Monday.com Slip

Zoom's stock fell 6% on Wednesday, despite the company delivering a double beat in Q2 earnings and raising its full-year outlook. The video collaboration firm guided Q3 profit to $1.47 per share, below the $1.50 Street estimate. HubSpot and Monday.com both slipped 1% and 2%, respectively, indicating the issue is specific to Zoom rather than a broader software sector selloff.

Zoom's enterprise revenue surged 7.8% year over year, marking its strongest growth in three years, accounting for 62% of total revenue. Online revenue grew only 1% in Q2. CEO Eric S. Yuan attributed the strong enterprise growth and remaining performance obligations increase to successful initiatives and optimization efforts.