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Zoom (ZM) stock surged 40.78% on Tuesday. The impressive performance is attributed to the 2020 Q2 results released earlier in the week.
Zoom Video Communications Inc (NASDAQ: ZM) stock was trading at its all-time high at $457.69 (+40.78%) on Tuesday after the company reported better than predicted 2020 Q2 results. ZM shares added slightly above $132 per share to close the day trading around $457.69. However, the shares had dropped approximately 0.81% in the after-hours trading session.
In the past five days, the shares have added around 57.59% through Tuesday, they gained approximately 72% in the past month, managed to more than double in value in the past three months, and notably added over 572% year to date through Tuesday.
As of the time of publication, there were around 182.11 million outstanding shares with a market capitalization of around $91.71 billion. With the company experiencing a surge in customer subscriptions amid the ongoing coronavirus market uncertainty, the share value is expected to continue rising in the coming quarters.
“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform,” said Eric Yuan, Zoom’s founder and CEO, in a press release.
After delivering a good performance to its shareholders, the company has only raised the bar for the upcoming quarters, whereby investors would like to see better than prior results.
“Zoom crushed its second-quarter results and once again substantially raised full-year revenue guidance,” said Morningstar analyst, Dan Romanoff. “While it was virtually impossible to top last quarter’s once-in-a-generation results, Zoom delivered a tremendous encore,” he added.
ZM Stock and Zoom Quarterly Performance
Zoom stock largely benefited from the huge revenue growth reported in the second quarter. The company has been working on improving its services and also putting the system security utmost priority.
“Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth of 355% year-over-year in Q2 and enabled us to increase our revenue outlook to approximately $2.37 billion to $2.39 billion for FY21, or 281% to 284% increase year-over-year,” Yuan stated in the press release.
The company notably reported approximately 370,200 customers with more than 10 employees, which is up approximately 458% from the same quarter last fiscal year. In addition, the company recorded 988 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 112% from the same quarter last fiscal year.
For the adjusted earnings per share, Zoom reported at $0.92, which was well above Wall Street’s estimates of $0.45.