Zoom (ZM) earnings Q4 2022

Eric Yuan, founder and CEO of Zoom Video Communications, stands before the opening bell during the company’s initial public offering at the Nasdaq MarketSite in New York on April 18, 2019.

Victor J. Blue | Bloomberg | Getty Images

Zoom shares fell as much as 13% in extended trading on Monday after the video-calling software maker issued full-year guidance that fell below what analysts had predicted.

Here’s how the company did:

  • Earnings: $1.29 per share, adjusted, vs. $1.06 per share as expected by analysts, according to Refinitiv.
  • Revenue: $1.07 billion, vs. $1.05 billion as expected by analysts, according to Refinitiv.

Zoom’s revenue increased 21% from a year earlier in the period that ended on Jan. 31. That’s a deceleration from 35% growth in the prior quarter, according to a statement.

Zoom said it had 509,800 customers with over 10 employees at the end of January, down from 512,100 in October. The company showed new figures to better reflect the evolution of its business following the pandemic growth. It now boasts 191,000 enterprise customers, which have been engaged by the company’s salespeople, channel partners or software vendor partners. That number is up 35% year over year.

“What’s happened over time as we see this tremendous growth in online as a channel, it started to kind of overlap there, which is why we don’t think it’s really the appropriate metric to use any longer going forward,” said Kelly Steckelberg, Zoom’s finance chief, on a Zoom video call with analysts.

The enterprise business should grow about 20% year over year in the current fiscal year, while the online business will be roughly flat, Steckelberg said. Smaller customers tend to leave and come back, she said.

Net income rose 88% in the quarter to $490.5 million as gross margin widened to 76% from 74.2% in the prior period.

However, in the first quarter and for the full year Zoom is projecting revenue that’s below what analysts were expecting. Sales in the current quarter will be $1.07 billion to $1.075 billion, representing growth of about 12%. Analysts polled by Refinitiv had expected $1.1 billion in revenue.

For the current fiscal year, the company sees $4.53 billion to $4.55 billion in revenue, implying 10.7% growth. Analysts polled by Refinitiv had been looking for $4.71 billion in revenue.

Zoom’s business took off in the early months of the pandemic as businesses, universities and consumers adjusted to life at home and communications over video. The company’s market cap peaked in October 2020 at about $159 billion. At the time, it was worth almost as much as Cisco, whose market cap sat at around $170 billion. Zoom is led by its founder, Eric Yuan, an early creator of Webex, which Cisco acquired in 2007.Since its stock hit a high, Zoom has lost over three-quarters of its value, while Cisco has gained almost 40%. The companies are now separate in market cap by about $190 billion.

Zoom said Bill McDermott, CEO of service-desk software maker ServiceNow and formerly CEO of enterprise software developer SAP, will replace investor Bart Swanson on the Zoom board.

Prior to the after-hours move, shares of Zoom were down almost 29% for the year, underperforming the S&P 500 index, which is down about 9% over the same period.

—CNBC’s Ari Levy contributed to this report.

This is breaking news. Please check back for updates.

WATCH: Results for Zoom should have implications on the broader software stocks, says Citi’s Radke

Starlink satellite dishes arrive, official thanks Elon Musk

SpaceX founder and Tesla CEO Elon Musk speaks on a screen during the Mobile World Congress (MWC) in Barcelona, Spain, June 29, 2021.

Nacho Doce | Reuters

A shipment of SpaceX’s Starlink satellite internet dishes arrived in Ukraine on Monday, less than 48 hours after CEO Elon Musk announced the company would send support, according to a top official in the nation’s government.

Ukraine digital minister Mykhailo Fedorov, who tagged Musk in a request on Twitter on Saturday, posted that Starlink was “here” in Ukraine – with a photo showing more than dozen boxes of the company’s user kits in the back of a truck.

Each Starlink kit includes a user terminal to connect to the satellites, a mounting tripod and a Wi-Fi router. How many kits SpaceX is sending to support Ukraine is unknown.

Fedorov thanked Musk in his tweet. Musk responded: “you are most welcome.”

Ukraine-based Oleg Kutkov tweeted a screenshot of an internet speed test on Monday, saying “Starlink is working in Kyiv” and thanked SpaceX for the company’s support.

The SpaceX CEO on Saturday emphasized that Starlink was already “active in Ukraine.” Fedorov’s plea for assistance came after a suspected cyber attack disrupted the satellite internet service of Viasat – although the number of customers affected by the latter company’s outage is unknown.

Musk has previously emphasized the flexibility of Starlink in providing internet service. In September, Musk talked about how the company would use links between the satellites to create a network that could provide service even in countries that prohibit SpaceX from installing ground infrastructure for distribution.

As for government regulators who want to block Starlink from using that capability, Musk had a simple answer.

“They can shake their fist at the sky,” Musk said.

SpaceX has launched about 2,000 Starlink satellites to date to support its global network. The company’s service has around 145,000 users as of January, who pay $99 a month for the standard service or $500 a month for a premium tier.

Cruise co-founder named CEO once again after unexpected departure

Cruise Automation COO Dan Kan (l to r), Cruise Automation CEO Kyle Vogt and General Motors President Dan Ammann Tuesday, November, 20, 2018 at Cruise Automation offices in San Francisco, California. 

Source: Noah Berger | General Motors

In naming a new CEO of self-driving company Cruise Monday, majority-owner General Motors is handing the firm back to one of its original founders.

Kyle Vogt, who co-founded Cruise and ran the start-up for years following GM’s acquisition in 2016, has once again been named CEO of the company. He announced the appointment Monday via social media, and it was later confirmed by a Cruise spokesman.

Vogt replaces Dan Ammann, a former president of GM, who was unexpectedly ousted from Cruise in December. Ammann was reportedly let go from Cruise by GM CEO and Chair Mary Barra, who also chairs Cruise’s board, over disagreements in strategy, including when to take the company public.

“Cruise and GM, we’re really totally aligned now on accelerating the joint autonomous vehicle strategy that we outlined at our recent investor day,” GM President Mark Reuss told CNBC a day after Ammann left the company.

Returning the company to Vogt, who had already been serving as interim CEO, comes at a pivotal time for the company.

Cruise is in the midst of securing final approval to commercialize a ride-hailing fleet of autonomous vehicles following years of testing in San Francisco. It’s also growing the operation, with plans for the company to generate billions in revenue this decade.

“Kyle certainly knows the company … Hopefully during Ammann’s tenure he had a chance to work closely with him and learn more about operating a company this size,” said Guidehouse Insights principal analyst Sam Abuelsamid. “If GM was willing to give him back the CEO position on a permanent basis, they presumably felt that he had learned enough in the last several years that he could handle the job now.”

Since acquiring Cruise, GM has invested billions in its operations and brought on investors including Honda Motor, Softbank Vision Fund and, more recently, Walmart and Microsoft.

Vogt will retain his prior positions of chief technology officer and president of the company.

Airbnb to offer free housing to 100,000 Ukrainian refugees

A woman talks on the phone at the Airbnb office headquarters in the SOMA district of San Francisco, California.

Gabrielle Lurie | Reuters

Airbnb said Monday it will offer free, temporary housing for up to 100,000 refugees fleeing Ukraine.

The company will fund these stays with help from Airbnb hosts and donations to the Airbnb.org Refugee Fund.

Over 500,000 Ukrainians have fled since the war began, according to The Associated Press. Ukraine’s ambassador to the United Nations said on Monday that Kyiv still hopes for a diplomatic resolution with Russia even as Moscow sends more troops and weapons to its border.

“We need help to meet this goal,” Airbnb co-founder and CEO Brian Chesky said on Twitter. “The greatest need we have is for more people who can offer their homes in nearby countries, including Poland, Germany, Hungary and Romania,” Chesky tweeted.

The initiative is part of Airbnb’s efforts to support refugees through the company’s nonprofit, Airbnb.org.

In September, the company said it planned to provide free, short-term housing to 40,000 Afghan refugees, double the initial goal of 20,000 announced in August. As of last week, Airbnb said it has provided housing to 21,300 Afghan refugees.

Airbnb and Airbnb.org have provided 54,000 refugees and those who have been granted asylum from many countries — including Syria, Venezuela and Afghanistan — with temporary housing over the last five years, the company said. Its refugee fund started last year.

Airbnb has not specified how much the company plans to spend on the latest commitment or how long refugees will be housed. More information about how hosts can support this initiative, such as by offering free or discounted stays, will be provided in the coming days, the company said.

Google, Facebook battle to stop spread of Russian disinformation

Participants in an unauthorized rally in central St Petersburg against the Russian military operation in Ukraine. Early on February 24, President Putin announced a special military operation by the Russian Armed Forces in response to appeals for help from the leaders of the Donetsk and the Lugansk People’s Republics. The poster reads ‘No to war’.

Alexander Demianchuk | TASS | Getty Images

U.S. tech companies like Google, Facebook and Twitter have started to respond to Russia’s invasion of Ukraine by attempting to stop the spread of misinformation and demonetizing ads that run on Russian state media accounts.

Ukrainian digital minister Mykhailo Fedorov posted public messages on Telegram and Twitter to put pressure on tech leaders in an attempt to drum up support.

Some companies have already started to make changes.

Meta, which owns the global social media giant Facebook, sad Monday it removed a network run by people in Russia and Ukraine that “ran a handful of websites masquerading as independent news outlets, publishing claims about the West betraying Ukraine and Ukraine being a failed state.”

It also identified a hacking and phishing attempt by Ghostwriter, a well-known threat actor, who trying to hack accounts to use in an effort to post YouTube videos showing Ukrainian troops surrendering to Russia accounts to post misinformation. Over the weekend, Facebook said it demonetized Russian state media accounts and began to add new safety features to Ukrainian accounts, like the option to lock a user profile or hide a friend’s list.

After speaking with the Ukrainian government, the company also said it would restrict access to several accounts in Ukraine, including some Russian state media organizations. It’s also “reviewing other government requests to restrict Russian state controlled media,” the company said in an update to the blog Sunday.

Google-owned YouTube on Saturday said it would also prevent some Russian companies, including state-run news company RT, from making money on the videos they post to YouTube. It will also restrict access to RT and a number of other channels in Ukraine.

Google cut some Google Maps features in Ukraine in an effort to protect citizens, according to Reuters, which said the company removed live traffic from the app and disabled a feature that shows how busy stores are.

Meanwhile, Twitter said last week it was “actively” monitoring the risks and working to remove disinformation. It’s also suspending advertisements in Ukraine and Russia.

Federov said he sent a letter last week to Apple CEO Tim Cook, asking him to stop supplying Apple services, including the App Store, and products to Russia. That could help young Russians to “proactively stop the disgraceful military aggression,” Federov wrote.

Federov also called out Tesla and SpaceX CEO Elon Musk, asking him to provide Starlink equipment to Ukraine.

“While you try to colonize Mars — Russia try to occupy Ukraine! While your rockets successfully land from space — Russian rockets attack Ukrainian civil people! We ask you to provide Ukraine with Starlink stations and to address sane Russians to stand,” Federov said.

Musk responded later in the day, saying: “Starlink service is now active in Ukraine. More terminals en route.”

Still, some global leaders say Big Tech hasn’t responded aggressively enough. The prime ministers of Poland, Estonia, Lithuania and Latvia sent a letter Sunday to the leaders of Facebook, Alphabet, Google, YouTube and Twitter, calling on them to “take a stand.”

“Although the online platforms have undertaken significant efforts to address the Russian government’s unprecedented assault on truth, they have not done enough,” said the letter, shared by Estonia PM Kaja Kallas. “Russia’s disinformation have been tolerated on online platforms for years; they are now an accessory to the criminal war of aggression the Russian government is conducting against Ukraine and the free world.”

Ukraine ‘not ready to surrender or capitulate’: Ukraine foreign minister

Ukraine has vowed it will not surrender to Russia, as talks are held between delegates from both countries following days of clashes across Ukraine.

“Ukraine is ready to continue seeking a diplomatic solution, but Ukraine is not ready to surrender or capitulate,” Foreign Minister Dmytro Kuleba told CNBC’s Hadley Gamble on Monday.

The comments come as Ukrainian and Russian officials hold talks in Belarus, which neighbors the two countries, aimed at de-escalating hostilities following Russia’s invasion of Ukraine last week.

Going into the discussions, Ukraine said it wants an immediate cease-fire and the withdrawal of Russian forces, which have attacked various cities and areas of northern, eastern and southern Ukraine. Meanwhile, troops are approaching the capital Kyiv from the north.

Kuleba said he did not know whether the talks were still ongoing and was unconvinced they would be successful.

“I’m a diplomat, I have to believe in the success of talks, but at the same time my main goal as a diplomat now is to impose more sanctions on Russia, to bring more weapons to Ukraine and to isolate Russia as much as we can in the international arena so I’m focused on this part of diplomacy,” he said

“We stand not only for ourselves but for the world order as we all know it,” he added.

Russia has conducted attacks both on the ground and by air, with major cities reporting shelling and damage to buildings, as well as the deaths of both soldiers and civilians.

The invasion has led to a huge number of Ukrainians attempting to flee the country for safety in Eastern Europe, although many have also stayed to defend their homes and nation.

Western nations have imposed far-reaching sanctions on Russia’s economy and financial transactions, including those related to its central bank. The moves prompted the Russian ruble to nose-dive around 29% against the dollar earlier Monday.

Kuleba said ordinary Russians would bear the brunt of volatility in the currency, noting that “the people of Russia are shocked and they already realize how much they [already] suffer from this unjustified aggression triggered by President Putin.”

Kuleba said it was vital for the international community to act as one in “taking a firm, consolidated stance” when it comes to not supporting Russia’s financial transactions, noting that “every Russian ruble has a mark of Ukrainian blood on it.”

Refugees on the platform of Lviv railway station are seen waiting for trains to Poland on Feb. 27th, 2022.

Pavlo Palamarchuk | Lightrocket | Getty Images

Analysts believe Russia has, so far, not made as much military progress as it would have hoped. Its forces have met strong resistance from Ukrainian troops and citizens who have been armed by the state.

Russia’s invasion of Ukraine is widely seen as an attempt by President Vladimir Putin to maintain Moscow’s influence and control over its neighbors and former Soviet states, as well as preventing the expansion of the Western military alliance NATO.

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Ukraine’s government has sought to move out of Russia’s orbit in the last two decades, and aspires to membership of NATO and the EU. President Volodymyr Zelenskyy called on Monday for the EU to allow it join the bloc immediately, although usually this process is long and drawn out.

Putin has tried to justify the invasion of Ukraine as Russia protecting its citizens in the country. Moscow announced last week it would recognize the independence of two pro-Russian, self-proclaimed republics in eastern Ukraine — a move that turned out to be the precursor to a full invasion.

Biden administration expands Russia sanctions, cuts off U.S. transactions with central bank

Russian President Vladimir Putin attends a meeting with Russian Defence Minister Sergei Shoigu at the Kremlin, in Moscow on February 14, 2022.

Alexei Nikolsky | AFP | Getty Images

WASHINGTON — The Biden administration announced additional sanctions against Russia’s central bank on Monday, a move that effectively prohibits Americans from doing any business with the bank as well as freezes assets within the United States.

The new measures will also target the National Wealth Fund of the Russian Federation and the Ministry of Finance of the Russian Federation.

A senior Biden administration official, who spoke on the condition of anonymity in order to share Washington’s thinking, said the new sanctions will take effect immediately.

“We wanted to put these actions in place before our markets open because what we learned over the course of the weekend from our allies and partners was the Russian Central Bank was attempting to move assets and there would be a great deal of asset flight starting on Monday morning from institutions around the world,” the official said, on a conference call with reporters.

“Our strategy to put it simply is to make sure that the Russian economy goes backward. As long as President Putin decides to go forward with his invasion of Ukraine,” the official added.

The U.S. is also adding Kirill Dmitriev, another ally of Russian President Vladimir Putin, to the sanctions list as well as the direct investment fund Dmitriev heads. The Russian Direct Investment Fund, or RDIF, is officially a sovereign wealth fund but is widely considered a slush fund for Putin.

The official said that the U.S. expects its allies to take similar steps in the coming days.

This comes after the U.S. and its allies announced over the weekend that they will impose restrictive measures aimed at preventing Russia’s central bank from deploying its international reserves in ways that may undermine sanctions.

“No country is sanctions proof and Putin’s war chest of $630 billion in reserves only matters if he can use it to defend his currency,” a second senior administration official said Monday.

The U.S. and its allies have imposed a deluge of severe sanctions on Moscow in recent weeks in a unified effort to keep economic pressure on the Kremlin.

Those penalties – imposed by the U.S. Departments of Treasury and Commerce – have sent the Russian markets sideways. The Russian ruble fell as low as 111 on Monday to the U.S. dollar from 83 on Friday, a drop of more than 20%. If that weakening holds, it would represent one of the largest single-day drops in the value of Moscow’s currency ever recorded.

The Bank of Russia, the nation’s central bank, stepped in to stanch the ruble’s swoon by more than doubling the country’s benchmark interest rate to 20% from 9.5%. The hike in rates is designed to tempt savers to keep cash in Russian banks since the West and its allies have moved to Moscow’s biggest lenders off from international markets.

The market-based calamity prompted the Russian central bank to keep the country’s stock exchange, the Moscow Exchange, closed on Monday.

On Saturday, the U.S., European allies and Canada agreed to remove key Russian banks from the interbank messaging system, SWIFT, an extraordinary step that will sever the country from much of the global financial system.

Moscow’s exclusion from SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, means Russian banks won’t be able to communicate securely with banks beyond its borders. Iran was removed from SWIFT in 2014 following developments to Tehran’s nuclear program.

The leaders of the European Commission, France, Germany, Italy, the United Kingdom, Canada and the U.S. also plan to limit the sale of so-called golden passports. A Biden administration described the golden passports as a loophole that allows wealthy Russians connected to the Kremlin to become citizens in other countries and access certain financial systems.

On Friday, the U.S. alongside the United Kingdom and the European Union announced sanctions against Russian President Vladimir Putin and Russian Foreign Minister Sergey Lavrov.

In the weeks leading up to the invasion, President Joe Biden threatened sanctions in the hopes of deterring Putin from further aggression against Ukraine.

Russia central bank hikes interest rates to 20% to bolster ruble

Russia’s central bank in Moscow.

Gavriil Grigorov | TASS | Getty Images

Russia’s central bank on Monday more than doubled the country’s key interest rate from 9.5% to 20% as its currency, the ruble, hit a record low against the dollar on the back of a slew of new sanctions and penalties imposed on Russia by Europe and the U.S. for its invasion of Ukraine.

The rate hike, the central bank said, “is designed to offset increased risk of ruble depreciation and inflation.”

This follows the central bank’s order to halt foreigners’ bids to sell Russian securities in an effort to contain the market fallout. The ruble fell as far as 119.50 per dollar, down a whopping 30% from Friday’s close. It later pared some of its losses, trading at 93.04 per dollar by 3:30 p.m. in Moscow, still down roughly 20% against the dollar in the last year.

Russia’s stock and derivatives markets will stay shut on Monday, the central bank said.

The bank also said it would be freeing 733 billion rubles ($8.78 billion) in local bank reserves to boost liquidity. Russian Central Bank Governor Elvira Nabiullina will hold a briefing at 1 p.m. London time Monday.

The dramatic developments underline fears of a run on Russia’s banks. Already, long lines to withdraw cash have been seen at ATMs in Russian cities. Sberbank Europe, which is owned by Russia’s state-run Sberbank, says it has experienced “significant outflows of deposits in a very short time.”

In a statement Monday, the Russian finance ministry and the central bank announced plans to order domestic exporters to sell their foreign exchange revenues starting on Feb. 28. The move will order exporters to sell 80% of all their forex revenues received under export contracts. 

Over the weekend, the U.S., European allies and Canada agreed to cut off key Russian banks from the interbank messaging system, SWIFT, which connects more than 11,000 banks and financial institutions in over 200 countries and territories. The EU also announced Sunday it was shutting its airspace to Russian aircraft.

The volatility in Russian markets “does show that the freezing of the Russian central banks assets, which was decided over the weekend by the EU as well as the other western countries led by the U.S. — it shows what a significant move that is,” David Marsh, chairman of economic policy think tank OMFIF, told CNBC’s “Squawk Box Europe” on Monday.

“That is actually much more significant than the SWIFT action, which was breaking a taboo by Germany when it joined in on that over the weekend,” he said, referring to sanctions that cut several Russian banks out of the global SWIFT payments system.

“It does mean that there is going to be this enormous scramble for dollars in Russia — we’ve seen the queues outside the banks and so on.”

Russia over the past several years has amassed a war chest of some $630 billion in foreign reserves, its highest level ever, which analysts say will help it withstand sanctions and losses in export revenue. But if some of those assets are frozen, that changes the calculus for Russia.

“We will paralyze the assets of Russia’s central bank,” EU Commission President Ursula von der Leyen said in a statement Sunday. “This will freeze its transactions. And it will make it impossible for the Central Bank to liquidate its assets.”

“The fact that the Russians cannot deploy a good part of this $600 billion worth of foreign currency reserves that the Russian central bank has been carefully building up does mean that we are onto an emergency war economy,” Marsh said. “And the idea of isolating Russia, which just a few days ago would have been thought of as unthinkable, it now is a reality.”

The ramp-up in punitive measures against Russia — the strongest that the EU has ever deployed against it — come as Russian forces deployed by President Vladimir Putin carry out offensives all over Ukraine. It follows several days of heavy shelling and missile strikes in major urban centers including Ukraine’s two largest cities, its capital Kyiv and Kharkiv, which together have a population of nearly 5 million people.

Ukrainian forces have so far managed to hold back the Russian advances and remain in control of the two cities, Ukraine’s defense ministry said on Sunday.

Correction: This story has been updated to show that Russia’s rate rise was a more than doubling of its original rate.