Eric Yuan, founder and CEO of Zoom Video Communications Inc., Center, responds as he rings the opening bell during the company’s initial public offering (IPO) at the Nasdaq MarketSite in New York, USA, on Thursday, April 18, 2019 Zoom reported a net income of $ 7.6 million on revenue of $ 331 million for the year ended January and is now worth nine times more than the $ 1 billion valuation it received after a round of financing two years ago ensured.
Victor J. Blue | Bloomberg | Getty Images
Zoom shares rose 11% on Monday in extended trading after video call maker reported fourth-quarter fiscal earnings stronger than analysts had expected.
Here’s how the business fared:
- Earnings: According to Refinitiv, $ 1.22 per share was adjusted, compared to 79 cents per share as expected by analysts.
- Income: According to Refinitiv, according to analysts, $ 882.5 million versus $ 811.8 million.
Revenue grew 369% year-on-year in the quarter ended January 31. In the previous quarter, people started using Zoom more heavily when the Covid-19 virus originated in China, which led the World Health Organization to call the virus a pandemic in March 2020. In the previous quarter, revenue grew by approximately 367%.
Zoom expanded its gross margin to 69.7% from 66.7% in the previous quarter. And the company has also made profits among small customers. Zoom had 467,100 customers with more than 10 employees at the end of the fiscal fourth quarter, up 470% year-over-year, compared to 354% growth in the previous quarter. The company increased its quarter by $ 4.24 billion in cash, cash equivalents and tradable bonds.
During the fiscal fourth quarter, Zoom said it had amassed more than 1 million seats for the payment of Zoom Phone, a service that enables people to virtually make and receive calls, send and receive voicemails.
In terms of leadership, Zoom for the fiscal first quarter sees 95 cents to 97 cents in adjusted earnings per share at $ 900 million and $ 905 million in revenue, which will mean a 175% revenue growth in the middle of the range. Analysts surveyed by Refinitiv expected 72 cents in adjusted earnings per share at $ 829.2 million in revenue.
For the full financial year 2022, Zoom asked for adjusted earnings of $ 3.59 and $ 3.65 per share and $ 3.76 billion and $ 3.78 billion in revenue, which would represent 42% growth. Analysts surveyed by Refinitiv were looking for $ 2.96 in adjusted earnings per share and $ 3.56 billion in revenue.
Excluding the after-hours move, Zoom shares have risen 22% since the beginning of the year, while the S&P 500 has risen less than 4% over the same period.
Managers will discuss the results with analysts during a Zoom video call starting at 5pm Eastern time.
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