Eric Yuan, founder and CEO of Zoom Video Communications Inc., reacts by ringing 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 a reported net income of $ 7.6 million on revenue of $ 331 million for the year ended January and is now worth nine times the $ 1 billion valuation it secured after a round of funding two years ago .
Victor J. Blue | Bloomberg | Getty Images
Zoom shares rose 11% in extended trading on Monday, after video call software maker reported fourth-quarter tax gains, which were stronger than analysts expected.
Here’s how the company did it:
- Earnings: $ 1.22 per share, adjusted, compared to 79 cents per share, as expected by analysts, according to Refinitiv.
- Income: $ 882.5 million, compared to $ 811.8 million, as expected by analysts, according to Refinitiv.
Revenues rose 369 percent year-over-year in the quarter ended Jan. 31, according to a statement. In the quarter of a year ago, people started using Zoom more, as the Covid-19 virus appeared in China, which led to the World Health Organization calling the virus a pandemic in March 2020. In the previous quarter , revenues increased by about 367%.
Zoom extended its gross margin to 69.7% from 66.7% in the previous quarter. And the company also recorded gains among small customers. Zoom said it had 467,100 customers at the end of the fourth fiscal quarter with more than 10 employees, up 470% from a 354% increase in the previous quarter. The company ended the quarter with $ 4.24 billion in cash, cash equivalents and marketable securities rising.
During the fourth fiscal quarter, Zoom said it has accumulated more than 1 million seats by paying for Zoom Phone, a service that allows people to make and receive phone calls, direct calls and accept voicemail.
In terms of guidance, for the first fiscal quarter Zoom sees 95 cents to 97 cents in adjusted earnings per share of $ 900 million and $ 905 million in revenue, which would mean a 175% increase in revenue in the middle of the range. Analysts surveyed by Refinitiv expected 72 cents in adjusted earnings per share, with revenues of $ 829.2 million.
For the full fiscal year 2022, Zoom called for adjusted earnings of $ 3.59 and $ 3.65 per share and $ 3.76 billion and $ 3.78 billion in revenue, an increase of 42%. Analysts surveyed by Refinitiv were looking for $ 2.96 in adjusted earnings per share and $ 3.56 billion in revenue.
With the exception of after-hours movement, Zoom’s stock has risen 22% since the beginning of the year, while the S&P 500 has risen less than 4% over the same period.
The directors will discuss the results with analysts for a Zoom video call that begins at 5:00 p.m., Eastern Time.
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