Zoom Shares Climb on Strong Earnings and Upbeat Forecast
The video communications company surpassed Wall Street's second-quarter estimates and raised its full-year financial outlook.
Zoom Video Communications Inc. (ZM) saw its shares rise more than 5% in after-hours trading after the company reported second-quarter financial results that exceeded analyst expectations and boosted its forecast for the full year, signaling sustained demand for its expanding suite of collaboration tools.
The company posted quarterly revenue of $1.22 billion, a 4.7% increase year-over-year, beating the consensus estimate of $1.20 billion. Adjusted earnings per share came in at $1.53, comfortably ahead of the $1.37 anticipated by analysts.
The positive results were driven by strong performance in its enterprise segment, which saw revenue grow 7% year-over-year. The company reported it ended the quarter with 4,274 customers contributing over $100,000 in trailing 12-month revenue, an increase of nearly 9% from the prior year, underscoring its successful push into larger corporate accounts.
In a statement, Zoom founder and CEO Eric Yuan highlighted the company's focus on artificial intelligence. "AI is transforming the way we work together, and Zoom is at the forefront, driving innovation that helps people get more done, reduce costs, and deliver better experiences for customers and employees alike," Yuan said.
Looking ahead, Zoom raised its outlook for the fiscal year. It now expects full-year revenue to be between $4.825 billion and $4.835 billion, up from previous guidance and above the $4.81 billion estimated by analysts. The company also projected full-year adjusted earnings between $5.81 and $5.84 per share, significantly higher than the consensus estimate of $5.58.