Revenue more than tripled to $ 882.5 million in the fiscal fourth quarter, the company said, beating analyst estimates.
Zoom Video Communications Inc. projected annual revenues that would exceed analysts’ estimates, signaling that the video conferencing service expects to remain ubiquitous in daily life even as the pandemic recedes. Shares jumped about 10% from extended trading.
Sales will hit $ 3.78 billion in fiscal 2022, the San Jose, Calif., Based company said on Monday in a statement. Although the expected annual revenue growth of 43% is well below Zoom’s 326% increase in the fiscal year ended Jan.31, it has exceeded analysts’ average estimate of 37%, the data shows. compiled by Bloomberg. Earnings, excluding certain items, will reach up to $ 3.65 per share. Analysts have projected $ 2.97.
Investors feared the software maker could not continue the dramatic growth in 2020 that came as people were forced to return home in remotely connected coronavirus lockouts to service for work, school, residents. friends and family.
While Zoom’s stock almost quintupled last year as it became one of the biggest beneficiaries of the pandemic, it had gained just 11% in the first two months of 2021 before jumping almost 10%. % Monday to close at $ 409.66 in New York.
CEO Eric Yuan tried to diversify Zoom’s capabilities and add products such as a cloud phone system to attract more large enterprises and small and medium enterprises.
“We believe that we are well positioned for strong growth through our innovative video communication platform, on which our clients can build, manage and grow their businesses; our globally recognized brand; and a team always focused on the happiness of our customers, ”Yuan said in the statement.
Revenue more than tripled to $ 882.5 million in the fiscal fourth quarter, the company said. Analysts have estimated an average of $ 811 million. Profit, excluding certain items, was 1.22 cents per share, compared to an average estimate of 79 cents.
“We believe, whether you like it or not, video will continue to remain a central part of our daily lives and be integrated into work, school, etc. Zoom will clearly benefit and report sustained levels of growth, in our view, and increasingly in the corporate segment, ”wrote Matt VanVliet, analyst at BTIG, in a note before earnings.
Zoom offers free video gatherings for 40 minutes and up to 100 attendees before users are charged for the service. Analysts focused on the churn rate, the number of customers who drop their monthly or yearly subscriptions, especially among business users.
The company said it had 467,100 customers with more than 10 employees, a jump of about 8% from the previous period and exceeding analysts’ average estimate of 442,570. The company also said that 1,644 clients had contributed $ 100,000 to revenues for the past 12 months. Analysts have projected 1,474 such clients.