Zoom’s ZM third-quarter fiscal 2023 adjusted earnings of $1.07 per share beat the Zacks Consensus Estimate by 27.38% but decreased 3.6% year over year.Revenues of $1.10 billion increased 5% year over year (7% in constant currency) and beat the consensus mark by 0.41%.Quarter DetailsRevenues from Enterprise customers grew 20% year over year and represented 56% of total revenues, up from 49% in third-quarter fiscal 2022. The number of Enterprise customers grew 14% year over year to over 209,300. The company reported a trailing 12-month net dollar expansion rate for Enterprise customers of 117%.In the fiscal third quarter, customers contributing more than $100,000 in revenues in the trailing 12 months grew 31% to 3,286. These customers accounted for 27% of revenues, up from 22% in the year-ago quarter. Zoom Video Communications, Inc. Price, Consensus and EPS Surprise Zoom Video Communications, Inc. price-consensus-eps-surprise-chart | Zoom Video Communications, Inc. Quote Online average monthly churn in the reported quarter improved to 3.1% from 3.7% reported in the year-ago quarter and 3.6% in the previous quarter.Revenues grew 11% in America, while international market revenues from APAC declined 3% year over year. EMEA revenues declined 9% year over year due to the stronger dollar and the Russia-Ukraine war.Operating DetailsNon-GAAP gross margin expanded 360 basis points (bps) to 79.5% in the fiscal third quarter of 2023 and 60 bps sequentially.The sequential improvement was primarily due to optimizing usage across the public cloud and Zoom’s increasing number of co-located data centers.Research and development expenses increased 59.4% year over year to $107.8 million. Sales and marketing expenses increased 26.6% to $300.6 million, while general and administrative expenses increased 6.1% to $86.9 million.Non-GAAP operating income decreased 7.4% to $380.9 million year over year. Non-GAAP operating margin contracted 460 bps to 34.6%.Balance Sheet and Cash FlowTotal cash, cash equivalents, and marketable securities as of Oct 31, 2022, was $5.17 billion. As of Jul 31, 2022, cash, cash equivalents and marketable securities were $5.5 billion.Adjusted free cash flow was $222.1 million.GuidanceZoom expects fourth-quarter fiscal 2023 revenues in the range of $1.095-$1.1105 billion, which at the midpoint represents roughly 3% year-over-year growth or 5% in constant currency.Non-GAAP operating income is expected between $316 million and $326 million. Non-GAAP earnings are expected in the range of 75 cents to 78 cents per share.For fiscal 2023, Zoom expects revenues in the range of $4.37-$4.38 billion. At the midpoint, this represents a decrease of over $15 million compared with the previous full-year guidance. Of this decrease, nearly $14 million is due to the stronger dollar.Zoom expects its gross margin in fiscal 2023 to be roughly 79%.Non-GAAP operating income is expected between $1.49 billion and $1.5 billion, representing a non-GAAP operating margin of approximately 34%.Non-GAAP earnings are expected in the range of $3.91-$3.94 per share.Zacks Rank & Key PicksCurrently, Zoom carries a Zacks Rank #3 (Hold).Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Jabil JBL, Guidewire GWRE and Mitek Systems MITK. While Jabil sports a Zacks Rank #1 (Strong Buy), Guidewire and Mitek carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of Jabil, Guidewire and Mitek have been down 1.6%, 49.6% and 40.7%, respectively. Special Report: The Top 5 IPOs for Your Portfolio Today, you have a chance to get in on the ground floor of one of the best investment opportunities of the year. As the world continues to benefit from an ever-evolving internet, a handful of innovative tech companies are on the brink of reaping immense rewards - and you can put yourself in a position to cash in. One is set to disrupt the online communication industry. Brilliantly designed for creating online communities, this stock is poised to explode when made public. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity.>>See Zacks’ Hottest IPOs NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jabil, Inc. (JBL): Free Stock Analysis Report Guidewire Software, Inc. (GWRE): Free Stock Analysis Report Mitek Systems, Inc. (MITK): Free Stock Analysis Report Zoom Video Communications, Inc. (ZM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research