Eric Yuan, founder and CEO of Zoom Video Communications Inc., center, reacts by ringing the opening bell during the company’s initial public offering (IPO) at Nasdaq MarketSite in New York, USA, on Thursday, April 18, 2019. Zoom reported a net profit 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 financing round two years ago.
Victor J. Blue | Bloomberg | Getty Images
Zoom’s shares rose 11% in the extended negotiations on Monday, after the video call software maker reported that fourth-quarter fiscal gains were stronger than analysts had expected.
See how the company did:
- Earnings: $ 1.22 per share, adjusted, against 79 cents per share as expected by analysts, according to Refinitiv.
- Recipe: US $ 882.5 million, against US $ 811.8 million as expected by analysts, according to Refinitiv.
Revenue grew 369% year-over-year in the quarter ended January 31, according to a statement. In the quarter of last year, people started using Zoom more intensively, as the Covid-19 virus emerged in China, leading the World Health Organization to consider it a pandemic in March 2020. In the previous quarter, revenue had grown by around 367%.
Zoom expanded its gross margin to 69.7% from 66.7% in the previous quarter. And the company has also made gains among small customers. Zoom said it had 467,100 customers with more than 10 employees at the end of the fourth fiscal quarter, an increase of 470% on an annualized basis, compared to the 354% growth in the previous quarter. The company ended the quarter with $ 4.24 billion in cash, cash equivalents and marketable securities, an increase.
During the fourth fiscal quarter, Zoom said it accumulated more than 1 million seats by paying for the Zoom Phone, a service that allows people to virtually make and receive calls, forward calls and accept voice messages.
Regarding the guidance, for the first fiscal quarter, Zoom sees 95 cents to 97 cents of adjusted earnings per share at $ 900 million and $ 905 million in revenue, which would imply revenue growth of 175% in the middle of range. Analysts polled by Refinitiv had expected 72 cents of adjusted earnings per share on $ 829.2 million in revenue.
For the entire fiscal year 2022, Zoom anticipated adjusted earnings of $ 3.59 and $ 3.65 per share and $ 3.76 billion and $ 3.78 billion in revenue, which would represent growth of 42%. Analysts polled by Refinitiv had expected $ 2.96 in adjusted earnings per share and $ 3.56 billion in revenue.
Excluding the change after hours, Zoom’s stock has risen 22% since the beginning of the year, while the S&P 500 has risen less than 4% in the same period.
Executives will discuss the results with analysts in a video call from Zoom that starts at 5 pm Eastern Time.
These are breaking news. Please check again for updates.
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