Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: Shares of Zoom Video Communications surged on Thursday, after the company released earnings results for the second quarter.
What happened: The video-conferencing provider reported stronger-than-expected sales and earnings for its second quarter.
Zoom also raised its full-year revenue outlook and announced the resignation of CFO Kelly Steckelberg.
How were the results: The San Jose, California-based company reported low single-digit growth in sales for the period ended July 31.
Why it matters: Zoom has been looking to integrate AI into its products and making efforts to expand its range of services.
The company said large accounts, with customers contributing over $100,000 in trailing twelve-month revenues, surged 7.1% year-over-year, while the online average monthly churn hit its lowest rate.
Zoom said Enterprise revenues grew by 3.5% year-over-year to $682.8 million during the quarter, while Online revenues came in flat at $479.7 million.
“In Q2, we outperformed our guidance across the board and grew operating cash flow and free cash flow by 33.7% and 26.2% year over year, respectively, demonstrating our continued commitment to efficient growth,” CEO Eric Yuan said during the earnings call.
Management guided to earnings between $1.29 and $1.31 per share for the third quarter, higher than market estimates of $1.24 per share. They also projected revenues of $1.16 billion to $1.165 billion.
For fiscal year 2025, the company sees earnings between $5.29 and $5.32 per share, versus market estimates of $5.05 per share. Zoom raised its revenue guidance for the year to between $4.63 billion and $4.64 billion, up from its prior forecast of $4.61 billion to $4.62 billion.
Zoom also said Kelly Steckelberg, who has been CFO since 2017, plans to step down on October 31.
How shares responded: Zoom’s shares jumped 13% to close at $68.04 on Thursday, following the release of quarterly results. The stock has climbed around 16% over the past month.
What to watch: Investors will continue monitoring the company’s efforts to integrate AI into its products, which could significantly impact its overall results ahead.
Context: The CAD/USD forex pair fell on Thursday, after reaching a four-month high.
Details: The Bank of Canada has lowered its benchmark interest rate twice since June to 4.5%, with markets projecting the central bank to slash rates by over 200 basis points (bps) by the end of 2025.
Canada’s two major freight railroads, Canadian National Railway Co and Canadian Pacific Kansas City Ltd, have stopped their operations, which is expected to cause the economy billions of dollars.
Strength in the US dollar exerted pressure on the CAD/USD forex pair on Thursday. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained around 0.5% to 101.51.
A rise in the price for crude oil, one of Canada’s major exports, limited the overall losses for the loonie. WTI crude oil futures jumped $1.08 to settle at $73.01 per barrel on Thursday.
The CAD/USD forex pair slipped around 0.2% to 1.3617 on Thursday, after hitting its highest level since April 10. The S&P/TSX Composite Index declined by 0.36% to close at 23,037.47, following a mixed performance by major commodity producers.
What to watch: Investors await the release of economic data on retail sales and manufacturing sales from Canada today. Analysts expect retail sales in Canada to decline by 0.3% in June, compared to a 0.8% decline in May. Manufacturing sales in Canada contracted 2.1% in June, after 0.2% growth in the prior month.
Other Markets: European indices closed mostly higher on Thursday, with the FTSE 100, DAX 40 and STOXX Europe 600 Index up by 0.06%, 0.24% and 0.35%, respectively, while the CAC 40 fell 0.01%.
The US is looking to send fresh military assistance worth around $125 million to Ukraine, which includes air defence missiles and artillery. The news sent the RUB/USD pair lower in forex trading this morning.
Japan’s annual inflation rate came in unchanged for the third consecutive month at 2.8% in July, lending support to the JPY/USD forex pair.
UK’s GfK Consumer Confidence indicator came in steady at -13 in August, sending the GBP/USD pair higher in forex trading this morning.
Argentina’s retail sales jumped 220.5% year-over-year in June, versus a 186.8% rise in the prior month, lending support to the ARS/USD forex pair.
New Zealand’s retail sales contracted by 1.2% in the three months to June, compared to a 0.5% gain in the prior quarter. However, the NZD/USD pair rose in forex trading this morning.
France’s manufacturing climate indicator and business climate indicator, Turkey’s tourist arrivals, India’s bank loan growth, deposit growth and foreign exchange reserves, US new home sales, building permits, Baker Hughes crude oil rigs, Baker Hughes total rigs and Fed Chair Powell speech, Mexico’s current account, Eurozone’s inflation expectations over the next 12 months, Spain’s consumer confidence, as well as Argentina’s leading economic index.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
