Does Zoom Video Deserve More Credit For Q1?
Video meeting firm Zoom Communications reported first-quarter EPS of$0.20 and $328.2 million in revenue. The consensus estimates had called for $0.09 in EPS and $202.48 million in revenue
When Zoom Video Communications Inc. (NASDAQ: ZM | ZM Price Prediction) 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.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
