Zoom Video Communications Inc. (NASDAQ: ZM) reported its financial results for the fiscal first quarter on Tuesday that beat Wall Street estimates. On the back of hawkish quarterly performance, the company also raised its guidance for the full year.
Zoom reported $227.4 million (£160.35 million) of net income in the first quarter that translates to 74 cents per share. In the same quarter last year, its net income was capped at a lower $27 million, or 9 cents per share.
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On an adjusted basis, the video conferencing company earned $1.32 per share in Q1 versus the year-ago figure of 20 cents per share. Zoom generated $956.2 million of revenue in the recent quarter – an increase from $382.2 million last year.
According to FactSet, experts had forecast the company to post $908 million of revenue and 99 cents per share of adjusted EPS.
Guidance for the full financial year
For the full financial year, Zoom now forecasts its per-share earnings to fall in the range of $4.56 to $4.61. It expects up to $3.99 billion of revenue this year. In comparison, analysts are calling for $3.8 billion of full-year revenue and $3.77 of earnings per share. Zoom also topped analysts’ estimates in the prior quarter (Q4).
Zoom won’t be irrelevant after the COVID-19 restrictions
On CNBC’s “Trading Nation”, Vios Advisors’ managing director Michael Bapis and TradingAnalysis.com’s founder Todd Gordon on Tuesday expressed confidence that Zoom won’t be irrelevant even after the COVID-19 restrictions are eased.
Commenting on the earnings report, CEO Eric Yuan of Zoom Video Communications said:
“We have opened our technology portfolio to developers through our powerful video SDK and to businesses to expand their reach through Zoom Events. Work is no longer a place, it’s a space where Zoom serves to empower your teams to connect and bring their best ideas to life. We are energized to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections.”
Impact on the share price
Zoom shares were reported about 2% up in after-hours trading on Tuesday. Including the price action, the stock is now exchanging hands at $335 per share. In comparison, it had started the year 2021 at a higher $360 per share. At the time of writing, the San Jose-based company is valued at $96.50 billion and has a price to earnings ratio of 145.49.
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