Online video conferencing player Zoom Video Communications (Nasdaq: ZM) continues to deliver stellar quarterly results. But recently, it had a big setback when its plans to acquire Five9 fell through.

Zoom’s Financials

Revenues for the second quarter grew 54% to $1,021.5 million, shattering the market’s forecast of $990 million. Excluding items, Zoom reported an EPS of $1.36, again beating analysts’ estimate of $1.16.

Among key metrics, Zoom now has more than 504,900 customers with more than 10 employees, recording a growth of 36% over the year. Customers contributing more than $100,000 in trailing twelve-month revenues grew 131% to 2,278.

For the third quarter, it forecast revenues of $1.015-$1.02 billion and an EPS of $1.07-$1.08. It expects to end the current year with revenues of $4.005-$4.015 billion and an EPS of $4.75-$4.79. The market was looking for revenues of $991.29 million and an EPS of $1.16 for the quarter; and revenue of $4 billion with an EPS of $4.68 for the year.

Zoom’s Five9 Acquisition

Last quarter, Zoom had announced the $14.7 billion acquisition of California-based Five9 to help expand its communications platform and enhance its presence within enterprise customers. However, the acquisition fell through and the two companies announced the mutual termination of its merger agreement. Five9 could not obtain the requisite stockholder support for the agreement, causing the failure. Its shareholders were not satisfied with the 13% premium that Zoom was set to pay, and expected a significantly higher premium given the current state of cloud software companies.

Zoom’s Partner Ecosystem

Meanwhile, Zoom continued to expand its partner network. It recently announced plans to expand the use of its RealWear assisted reality headset devices to frontline workers globally at ExxonMobil. The integration will allow field workers to use RealWear devices that are able to deliver a hands-free Zoom experience. RealWear’s head-mounted Android computer headset is among the leading one for use in operating areas. Zoom is hopeful that the future use cases of the headset will include self-guided work instructions and real-time IoT data visualization to reduce errors and improve quality.

Zoom also announced that its reseller partners will now be able to sell Zoom Phone Bring Your Own Carrier (BYOC) licenses that will let customers use enhanced cloud peering to access PSTN to Zoom Phone Provider Exchange. Zoom Phone is a full-featured cloud phone system for businesses and its Phone BYOC provides enterprise customers the ability to keep their current PSTN service providers by redirecting existing voice circuits to the Zoom Phone cloud. Prior to this expansion of reseller agreements, only Zoom Master Agents could refer deals for Zoom Phone and Zoom Phone BYOC. Now, Zoom’s reseller partners who meet the requirements and qualify will be authorized to resell Zoom Phone BYOC.

Its stock is currently trading at $267.56 with a market capitalization of $79.5 billion. It was trading at a 52-week low of $255.25 earlier this week. It had soared to a record high of $588.84 in October last year.