Does Zoom Video Deserve More Credit For Q1?
When Zoom Video Communications Inc. (NASDAQ: ZM) released its fiscal first-quarter financial results after the markets closed on Tuesday, the firm said that it had $0.20 in earnings per share (EPS) and $328.2 million in revenue. The consensus estimates had called for $0.09 in EPS and $202.48 million in revenue. In the same period of last year, it said it had $0.03 in EPS and $111.66 million in revenue.
At the end of the latest quarter, Zoom had roughly 265,400 customers, or about 354% more than in the same quarter last year.
The firm also boasted 769 customers contributing more than $100,000 in trailing 12 months revenue, up 90% from the same quarter last year.
On the books, cash, cash equivalents, and marketable securities totaled $1.1 billion at the end of the quarter.
Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $0.44 to $0.46 and revenue between $495 million and $500 million. Consensus estimates call for $0.11 in EPS and $223.32 million in revenue for the quarter.
Eric S. Yuan, president and CEO of Zoom, commented:
We were humbled by the accelerated adoption of the Zoom platform around the globe in Q1. The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom. Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives. I am proud of our Zoom employees who dedicated themselves to support customers and the global community during this crisis. With their tremendous efforts, we were able to provide high-quality video services to new and existing customers.
Zoom Video Communications stock closed Tuesday at $208.08, with a 52-week range of $60.97 to $212.69. The consensus price target is down at $132.07. Following the announcement, the stock was up 1% at $210.14 in the after-hours session.