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Leading videoconferencing software company Zoom Video Communications reported major revenue growth with the stay at home demand from the COVID lockdown during its fiscal first quarter on Tuesday after the market ZM stock rose on the report

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Zoom Video Communications Inc NASDAQ: ZM Reported Earnings After Close Wednesday

$0.20 Beat $0.09 EPS AND $328.2Billion Beat $202.7 Billion Revenue Forecast

Earnings

Zoom reported earnings earnings of 20 cents per share, adjusted on revenue of $328.2 million beating expectations of analysts surveyed by Refinitiv had expected 9 cents in adjusted earnings per share and $202.7 million in revenue for the quarter, which ended Apr. 30. ZM ’s revenue grew 169% on an annualized basis in the quarter, according to a statement. Growth accelerated from 78% in the prior quarter.

 

Zoom Video Communications Inc NASDAQ: ZM

Reaction After hours After hours $213.50 +5.42 (+2.60%)

After Closing $208.08 USD +3.93 (+1.93%) on Day

Highlights

  • Zoom did not disclose active user numbers.
  • Zoom’s mobile app had 173 million monthly active users as of May 27, up from 14 million on March as more people have flocked to Zoom,
  • Zoom said it had 769 customers paying over $100,000 in the trailing 12 months at the end of the fiscal first quarter, up 90% on an annualized basis, compared with 86% in the prior quarter.
  • The company had 265,400 customers with more than 10 employees at the end of the quarter, up 354%.
  • The growth rate in the prior quarter was 61%.

Competition, Security and privacy issues in Zoom’s software.

At the beginning of April Zoom said it would spend the next 90 days finding and fixing problems. Facebook introduced a video-calling feature called Messenger Rooms in April that could work as alternative to the free version of Zoom, sending Zoom shares downward, and Verizon announced the acquisition of smaller competitor Blue Jeans.

Outlook

With respect to guidance, Zoom sees 44 cents to 46 cents in adjusted earnings per share on $495 million to $500 million in revenue in the fiscal second quarter. Analysts polled by Refinitiv had been looking for 11 cents in adjusted earnings per share on $223.8 million in revenue.

For Zoom’s full 2021 fiscal year the company is calling for $1.21 to $1.29 in adjusted earnings per share on $1.78 billion to 1.80 billion in revenue. Analysts polled by Refinitiv had estimated 45 cents in adjusted earnings per share and $935.2 million in revenue for the fiscal year.

The Bernstein analysts said they thought the influx of new Zoom users could yield $500 million to $1 billion in additional revenue for the full fiscal year, on top of what they had already modeled before the pandemic. Executives will discuss the results with analysts on a Zoom call at 5:30 p.m. Eastern time.

Source: Zoom

From The TradersCommunity News Desk

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