Zoom Video Communications (NASDAQ:ZM) lifted its full-year guidance after delivering third-quarter results that exceeded Wall Street expectations, driven by efforts to reduce churn and grow enterprise revenue. Despite the positive performance, Zoom’s stock fell over 8% in pre-market today, as investor expectations remained high.

For the third quarter, Zoom reported adjusted earnings per share (EPS) of $1.38 on revenue of $1.18 billion, surpassing analyst estimates of $1.31 EPS on $1.16 billion in revenue. Enterprise customers proved a key growth driver, with those contributing over $100,000 in trailing 12-month revenue increasing by 7.1% to 3,995 compared to the same period last year.

Revenue grew 4% year-over-year, while enterprise revenue rose by 6%. The company also achieved a record low online monthly average churn of 2.7%, reflecting improved customer retention.

For the fourth quarter, Zoom provided guidance for adjusted EPS in the range of $1.29 to $1.30 on revenue between $1.175 billion and $1.180 billion. The company also revised its full-year forecast upward, projecting adjusted EPS of $5.41 to $5.43 on revenue of $4.656 billion to $4.661 billion. This marked an increase from its prior guidance of $5.29 to $5.32 EPS on revenue of $4.630 billion to $4.640 billion.