Wall Street may predict that workers will become less dependent on Zoom calls because Vaccines against covid-19 are rolled out, but the video conferencing startup still had a surprisingly strong performance in the last quarter and was forecasting faster-than-expected growth over the next 12 months.
The news pushed Zoom’s shares up to 10% on Monday after-sales, valuing the company at $ 131 billion. They are still more than 20% below the peak reached in October, before investors start to consider easing in prices. pandemic restrictions this year.
Eric Yuan, Managing Director, said Zoom was rushing to diversify by trying to capitalize on the huge new audience drawn to its video conferencing service last year. On a call with Wall Street analysts, he claimed he was moving from being a “killer apps company to a platform company”, supporting a wider range of services. Communication.
“I think becoming a platform company will become a great opportunity for us,” Yuan said. “We’re not just a video conferencing company anymore.”
$ 260 million
Zoom’s net income for its last quarter based on formal accounting rules, up from $ 15 million the previous year
For the past quarter, however, his fortune was heavily dependent on the video conferencing app that made his name a household word. Revenue climbed to $ 883 million in the three months leading up to the end of January, from $ 188 million the year before and 9% above most analysts’ expectations. The company said it now has 467,100 customers with more than 10 employees, nearly five times more than before the pandemic.
Despite forecasts that his department will play a less central role in the lives of many workers and students in 2021, Zoom said he expects revenue in his next fiscal year to increase by 43% from 3. $ 76 billion to $ 3.78 billion, compared to $ 3.76 billion. with Wall Street projections of around $ 3.5 billion.
One of the factors driving growth was the stabilization of the customer churn rate, which had risen rapidly last year as many smaller customers were drawn to the service. Kelly Steckelberg, CFO, said the pace of users returning to the office was one of the factors that made it difficult to predict customer churn rate in 2021, while adding that the company expected that it remains at current levels.
Zoom’s pro forma earnings per share – calculated after deducting stock compensation expenses – fell from 15 cents to $ 1.22 the year before and was 43 cents above expectations. Based on formal accounting rules, Zoom’s net income increased from $ 15 million to $ 260 million, or 87 cents per share.
He also predicted pro forma earnings per share for its current year of between $ 3.59 and $ 3.65, higher than the $ 2.96 per share analysts had penciled in.