How Zoom Knocked It Out of the Park With Q1 Earnings
Zoom Video stock soared on Friday after it released its fiscal first-quarter financial results late on Thursday.
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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.
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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.
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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.
