Zoom (NASDAQ:ZM) shares plunge more than 6% intra-day today after the company reported its Q1 earnings, with Online driving a solid beat, offsetting Enterprise weakness.

EPS came in at $1.16, above the Street estimate of $0.99. Revenue of $1.1 billion was slightly better than the Street estimate of $1.08 billion. The company expects Q2/24 EPS of $1.04-$1.06, compared to the Street’s $1.05, and revenue of $1.11-$1.115 billion, compared to the Street’s $1.11 billion.

For 2024, the company anticipates EPS of $4.25-$4.31, compared to the Street’s $4.22, and revenue of $4.465-$4.485 billion, compared to the Street’s $4.45 billion.

While noting they are encouraged by Online stabilizing ahead of schedule, analysts at RBC Capital said they would prefer to see more resiliency out of the Enterprise business, where the 2024 growth outlook was revised down to just 6% (vs. low-double-digits prior), which management attributed to temporary disruption from the RIF/restructuring.