By
Steve Muchoki
August 22nd, 2023
ZM shares are trading remarkably higher at the time of writing, with investor sentiments heightened following the bullish 2021 guidance revealed by the company.
The shares of Zoom Video Communications Inc (NASDAQ: ZM) are up 8.60% in the pre-market as the San Jose-based firm released its Q4 reports that beat analysts’ estimates. The company reported a revenue of $882.5 million, as against the $811.8 million projected by analysts polled by Refinitiv. The total revenue for the 4th quarter is up 369% on a year-over-year basis.
The firm reported Q4 Earnings per share of $1.22 on an adjusted basis as against the 79 cents expected from analysts. Zoom’s impressive performance in the fourth quarter was also reflected in its full 2020 fiscal year record. For the year, total revenue of $2.6514 billion was reported, up 326% year-over-year.
Non-GAAP net income for the fiscal year was $995.7 million, and the Earnings per share came in at $3.34. This figure was contrasted with the Non-GAAP net income of $101.3 million in the year-ago period, atop a $0.35 Earnings per share.
“The fourth quarter marked a strong finish to an unprecedented year for Zoom. In FY2021, we significantly scaled our business to provide critical communications and collaboration services to our customers and the global community in response to the pandemic. We are humbled by our role as a trusted partner and an engine for the modern work-from-anywhere environment. Our ability to rapidly respond and execute drove strong financial results throughout the year,” said Eric S. Yuan, Founder and Chief Executive Officer of Zoom.
Following the earnings release, ZM shares closed Monday’s session with a 9.65% growth to crest at $409.66. The stock is up by an additional 8.60% in the pre-market and currently valued at $444.88 per share.
Zoom Video Communications Inc acknowledged that its reported growth was fueled by the acquisition of new paying users. The company saw an influx of approximately 467,100 customers with more than 10 employees, up about 470% from the same quarter last fiscal year.
ZM also recorded 1,644 customers contributing more than $100,000 in the trailing 12 months (“TTM”) revenue. This figure is up by 156% in the same quarter of last year.
ZM Shares Bounces amid Positive 2021 Forecast
ZM shares are trading remarkably higher at the time of writing, with investor sentiments heightened following the bullish 2021 guidance revealed by the company in hopes of improved business as the world returns back to life post-COVID-19 pandemic.
For the first quarter of the current financial year, Zoom expects its total revenue to peg between $900M to $905 million with Diluted Earnings per share expected to range from $0.95 and $0.97.
The full-year revenue is projected to be between $3.760B and $3.780 billion, atop a diluted earning per share of $3.59 and $3.65.
“As we enter FY2022, we believe we are well-positioned for strong growth with our innovative video communications platform, on which our customers can build, run, and grow their businesses; our globally recognized brand, and a team ever focused on delivering happiness to our customers,” Eric added.
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