Zoom Video Communications, Inc. (NASDAQ:ZM) shares closed more than 5% higher on Tuesday following the company’s reported Q1 results, with EPS coming in at $1.03, versus the Street estimate of $0.86. Revenue rose 12% year-over-year to $1.07 billion, in line with the expectations.

Despite solid results, the company continued to see a year-over-year decline in its Online business and reported a deceleration in up-market customer growth and a contraction in its Enterprise NDER.

Oppenheimer analysts said they are comfortable with management's Enterprise execution and ability to drive more expansion; however, they are also cautious the Online business could remain volatile throughout 2023 and be a meaningful swing factor in management's ability to deliver on its H2/23 revenue growth acceleration.

The analysts remain cautious near-term, looking for better signs of stability in Zoom's Online business.