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Zoom posted Q2 revenue of $663.5 million outperforming the benchmark of $500.5 million. ZM stock is up today in the pre-market.
The shares of Zoom Video Communications Inc (NASDAQ: ZM) has soared by more than 8% on Monday after the company reported above expected earnings. The shares coursed on to new highs in the after-hours trading gaining an additional 22.74%. Now in the pre-market, the stock is 26.87% up, at $412.44. With an outing that positioned Zoom (ZM) as one of the best-performing stocks of the year, the shares are up by about 369% in 2020, becoming a very relevant communication medium amid the COVID-19 pandemic and ensuing lockdowns.
Zoom has thus seen about 355% growth year-on-year as the app keeps devising ways to securely connect people together. In a statement, Zoom (ZM) founder and CEO Eric S. Yuan said:
“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. At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases. 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’s statement comes at a time when businesses are losing revenue due to the coronavirus pandemic, a positive ticker for investors.
Zoom (ZM) Earnings by Numbers
Zoom (ZM) posted Q2 revenue of $663.5 million outperforming the benchmark of $500.5 million according to analysts polled by Refinitiv.
As reported by CNBC, Zoom’s income neared $186 million, up from just $5.5 million in the year-ago quarter. Zoom increased its adjusted gross margin to 72.3% from 69.4% one quarter earlier partly because of expanding the capacity of its own data center equipment.
Total cash, cash equivalents, and marketable securities as of July 31, 2020, were $1.5 billion. Non-GAAP net income per share was pegged at 92 Cents as against the 45 Cents analysts expected.
Approximately 370,200 customers with more than 10 employees, up approximately 458% from the same quarter last fiscal year.
Zoom has also provided guidance for the fiscal third-quarter earnings of 73 cents to 74 cents per share on an adjusted basis and $685 million to $690 million in revenue.
Zoom also raised its guidance for the full 2021 fiscal year. The company called for $2.40 to $2.47 in adjusted earnings per share and $2.37 billion to $2.39 billion in revenue, implying 282% annualized revenue growth in the middle of the range.