How Zoom Video’s Earnings Are Making the Case For The Best Coronavirus Stock
Zoom Communications reported earnings per share (EPS) of $0.92 and $663.5 million in revenue after markets closed Monday. Consensus estimates had called for $0.45 in EPS and $500.45 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 reported $0.92 in earnings per share (EPS) and $663.5 million in revenue. The consensus estimates had called for $0.45 in EPS and $500.45 million in revenue. In the same period of last year, it said it had $0.08 in EPS and $145.8 million in revenue.
The numbers this quarter were especially eye-popping. First the fact that Zoom crushed its expectations on both the top- and bottom-line, and then customer metrics further solidified this report. Revenues grew 355% year over year.
At the end of the latest quarter, Zoom had roughly 370,200 customers, or about 458% more than in the same quarter last year.
The firm also boasted 988 customers contributing more than $100,000 in trailing 12 months revenue, up 112% from the same quarter last year.
On the books, cash, cash equivalents, and marketable securities totaled $1.5 billion at the end of the quarter.
Net cash provided by operating activities was $401.3 million for the quarter, compared to $31.2 million in the same period last year. At the same time, free cash flow was $373.4 million, versus $17.1 million.
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Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $0.73 to $0.74 and revenue between $685 million and $690 million. Consensus estimates call for $0.35 in EPS and $492.9 million in revenue for the quarter.
Zoom Video Communications stock closed Tuesday at $325.25, with a 52-week range of $60.97 to $325.90. The consensus price target is down at $234.11. Following the announcement, the stock was up 5% at $341.31 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.
