Shares of Zoom Video Communications (NASDAQ:ZM) have jumped today, up by 11% as of 12:15 p.m. EST, after rival enterprise collaboration platform Microsoft Teams suffered a widespread outage. Zoom separately also announced that it would release fourth-quarter earnings results on March 4.
Microsoft Teams went down earlier in this morning after the software giant reportedly forgot to renew a security certificate that is necessary to connect to Microsoft's servers. Such a relatively simple mistake is rather embarrassing for one of the largest tech companies in the world, but Microsoft was able to quickly deploy a fix and restore service to Teams, which competes with Zoom's online videoconferencing and collaboration platform.
In other news, Zoom also disclosed a couple of insider transactions on Friday. CEO Eric Yuan converted and donated 50,000 shares to a charitable donor-advised fund, while director Peter Gassner received nearly 500 shares after part of a restricted stock unit award vested, according to regulatory filings. Neither transaction was particularly significant.
Investors are clearly looking forward to Zoom's fourth-quarter earnings report. The company had crushed its own forecast in the third quarter and raised its full-year guidance, but shares still fell following the results. The market may be realizing that the sell-off was an overreaction. Guidance for the fourth quarter calls for revenue of $175 million to $176 million, which should bring full-year revenue to $609 million to $610 million.