Eric Yuan, founder and CEO of Zoom Video Communications Inc., reacts while ringing the opening bell during the company’s initial public offering (IPO) at the Nasdaq MarketSite in New York, USA, on Thursday, April 18 of 2019. Zoom reported net income of $ 7.6 million for revenue of $ 331 million for the year ended January and is now worth nine times the $ 1 billion valuation it achieved after a round of funding two years ago.
Victor J. Blue | Bloomberg | Getty Images
Shares of Zoom rose 11% in extended trading on Monday after video call software maker reported fourth-quarter tax gains that were stronger than analysts expected.
Here’s how the company did it:
- Earnings: $ 1.22 per share, adjusted, against 79 cents per share, as analysts expected, according to Refinitiv.
- Income: $ 882.5 million, up from 811.8 million expected by analysts, according to Refinitiv.
Revenue grew 369% year-over-year in the quarter ended Jan. 31, according to a statement. During the quarter of last year, people began using Zoom more intensely as the Covid-19 virus emerged in China, making the World Health Organization consider the virus a pandemic. in March 2020. In the previous quarter, revenue had grown by 367%.
Zoom extended its gross margin to 69.7%, from 66.7% in the previous quarter. And the company also made a profit among small customers. Zoom claimed it had 467,100 customers with more than 10 employees at the end of the fourth fiscal quarter, 470% more on an annualized basis, compared to 354% growth in the previous quarter. The company ended the quarter with $ 4.242 billion in cash, cash equivalents and marketable securities.
During the fourth fiscal quarter, Zoom said it had amassed more than a million seats by paying for Zoom Phone, a service that allows people to virtually make and receive phone calls, route calls, and accept voice messages.
In terms of guidelines, for the first fiscal quarter, Zoom recorded 95 cents to 97 cents in adjusted earnings per share of $ 900 million and $ 905 million in revenue, which would imply 175% growth in income in the middle of the range. Analysts polled by Refinitiv had expected 72 cents earnings per share adjusted to revenue of $ 829.2 million.
Throughout fiscal year 2022, Zoom reported adjusted earnings of $ 3.59 and $ 3.65 per share and revenue of $ 3,766 million and $ 3,788 million, which would represent 42% growth. Analysts surveyed by Refinitiv had been looking for $ 2.96 in adjusted earnings per share and $ 3.56 million in revenue.
Excluding off-hours commuting, 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.
Executives will discuss the results with analysts in a Zoom video call that begins at 5 p.m., Eastern Time.
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