Zoom Video Communications
are gaining ground in late trading Monday after the videoconferencing software company posted better-than-expected results for its fiscal first quarter.
For the quarter ended April 30, Zoom (ticker: ZM) posted revenue of $1.1 billion, up 3%, and ahead of both the Wall Street consensus forecast of $1.08 billion and the company’s forecast range of $1.08 billion to $1.805 billion.
On an adjusted basis, Zoom earned $1.16 a share, topping both the Wall Street consensus at 99 cents and the company’s guidance range of 96 to 98 cents. Under generally accepted accounting principles, the company earned five cents a share.
CEO Eric Yuan said in a statement that the results reflect “enterprise growth and stabilizing online revenue,” as well as “greater efficiencies in our business,” boosting profitability.
Zoom said it now has 215,900 enterprise customers, up 9% from a year ago, with 3,580 customers generating more than $100,000 in trailing 12 months revenue, up 23% from a year ago.
For the fiscal second quarter ending in July, Zoom sees revenue of between $1.11 billion and $1.115 billion, about in line with the Wall Street consensus forecast of $1.11 billion. The company sees adjusted profits of between $1.04 and $1.06 a share, right in line with Wall Street’s $1.05 per-share estimate.
For the January 2024 fiscal year, Zoom now sees revenue of between $4.465 billion and $4.485 billion, with non-GAAP profits of $4.25 to $4.31 a share. Previous guidance had called for revenue of between $4.435 billion and $4.455 billion, with adjusted profits of between $4.11 and $4.18 a share.
Wall Street consensus estimates had called for $4.45 billion in revenue and profits of $4.22 a share on an adjusted basis.
Zoom shares in late trading were up 4.9%, to $74.88.
Write to Eric J. Savitz at firstname.lastname@example.org