How Zoom Knocked It Out of the Park With Q1 Earnings
When Zoom Video Communications Inc. (NASDAQ: ZM) released its fiscal first-quarter financial results after the markets closed on Thursday, the firm said that it had $0.03 in earnings per share (EPS) and $122 million in revenue. The consensus estimates had called for breakeven earnings and $111.73 million in revenue. In the same period of last year, it said it had breakeven earnings and $60.1 million in revenue.
At the end of the latest quarter, Zoom had roughly 58,500 customers, or about 86% more than in the same quarter last year, and more than 10 employees. The firm also boasted 405 customers contributing more than $100,000 in trailing 12 months revenue, up 120% from the same quarter last year.
Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $0.01 to $0.02 and revenue between $129 million and $130 million. Consensus estimates call for breakeven earnings and $123.3 million in revenue for the quarter.
Eric S. Yuan, president and CEO of Zoom, commented:
In our first quarter as a public company, strong execution and expanding adoption of Zoom’s video-first unified communications platform drove total revenue growth of 103% year-over-year. While we remain focused on strong growth, we are also pleased that our highly efficient business model and disciplined investment approach contributed to positive non-GAAP profitability and free cash flow.
Shares of Zoom traded up about 20% to $95.27 on Friday, in a post-IPO range of $59.94 to $98.89. The consensus price target is $73.18.