Zoom Communications Inc ( ZM ) reported second-quarter financial results after the market close on Thursday. Here’s a rundown of the report.

Q2 Highlights: Zoom reported second-quarter revenue of $1.22 billion, beating the consensus estimate of $1.20 billion. The communications company reported second-quarter adjusted earnings of $1.53 per share, beating analyst estimates of $1.37 per share, according to Benzinga Pro.

Total revenue was up 4.7% on a year-over-year basis. Enterprise revenue was up 7% year-over-year, and online revenue was up 1.4% year-over-year. 

Zoom said online monthly average churn was 2.9% in the quarter. The company ended the quarter with 4,274 customers contributing more than $100,000 in trailing 12 months revenue, up 8.7% year-over-year.

Net cash provided by operating activities was $515.9 million in the second quarter and free cash flow came in at $508 million. Zoom ended the period with $7.8 billion in cash, cash equivalents and marketable securities.

“AI is transforming the way we work together, and Zoom is at the forefront, driving innovation that helps people get more done, reduce costs, and deliver better experiences for customers and employees alike,” said Eric Yuan, founder and CEO of Zoom.

“We delivered an across-the-board strong Q2 marked by achieving our highest year-over-year revenue growth in 11 quarters and expanding GAAP operating margin year over year by 9 percentage points.”

Outlook: Zoom expects third-quarter revenue to be in the range of $1.21 billion to $1.215 billion versus estimates of $1.211 billion. The company anticipates third-quarter adjusted earnings of $1.42 to $1.44 per share versus estimates of $1.39 per share. 

Zoom expects full-year revenue of $4.825 billion to $4.835 billion versus estimates of $4.81 billion. Full-year earnings are expected to be between $5.81 and $5.84 per share versus estimates of $5.58 per share.

Zoom executives will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.

ZM Price Action: Zoom shares were up 5.79% in after-hours Thursday, trading at $77.41 at the time of publication, according to Benzinga Pro.

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