Zoom Video Communications Inc. founder and CEO Eric Yuan on the company’s IPO on the Nasdaq MarketSite in New York, April 18, 2019.
Victor J. Blue | Bloomberg | Getty Images
Zoom reported better-than-expected results on Tuesday with sales growth of 191%. The stock rose 1% in extended trading after initially falling as much as 5% on concerns about a looming slowdown.
This is how the company did it:
- Merits: $ 1.32 per share, adjusted, down from 99 cents per share analyst expects, Refinitiv said.
- Revenue: $ 956.2 million versus $ 906.0 million as analysts expected, Refinitiv said.
Revenue for the quarter ended April 30th rose from $ 328.2 million a year earlier, according to a statement. Revenue rose 369% in the previous quarter as the company lapped the coronavirus pandemic outbreak in the United States, which brought in millions of new users.
Zoom expects adjusted earnings per share of $ 1.14 to $ 1.15 on revenue of $ 985 to 990 million for the second quarter. Analysts polled by Refinitiv had expected adjusted earnings of 94 cents per share and sales of $ 931.8 million.
For the full 2022 fiscal year, Zoom now sees adjusted earnings per share of $ 4.56 to $ 4.61 and revenue of $ 3.98 billion and $ 3.99 billion. Analysts polled by Refinitiv were looking for adjusted earnings per share of $ 3.76 and revenue of $ 3.8 billion.
Zoom said its Zoom Phone product, which includes cloud-based phone services as well as video calling and other features, had 1.5 million seats at the end of April, up from 1 million in January.
Zoom’s stocks have fallen about 3% since early 2021, while the S&P 500 index has risen nearly 12% over the same period.
During the quarter, Zoom announced improvements to its Zoom Rooms offering for meeting venues and a $ 100 million venture capital fund.
Executives will discuss the results with analysts in a Zoom call starting at 5:00 p.m. Eastern Time.
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CLOCK: Zoom COO Aparna Bawa on the hybrid work environment
