Zoom Video Communications (ZM) reported first-quarter earnings and revenue late Tuesday that topped analyst estimates as it continued to add large corporate customers. Zoom stock was up in extended trading after the company raised its fiscal 2022 revenue outlook.
San Jose, Calif.-based Zoom said April-quarter earnings jumped 560% to $1.32 a share on an adjusted basis from a year earlier. Revenue soared 191% to $956.2 million, the company said.
A year earlier, Zoom earned 20 cents a share on sales of $328.2 million. Zoom stock analysts projected earnings of 99 cents a share on sales of $906.3 million for the period ended April 30.
Zoom Video said it had 1,999 customers contributing more than $100,000 each in the trailing 12 months as of April 30. That was up 22% from 1,644 such customers in the January quarter.
For the current quarter ending in July, Zoom forecast revenue of $987.5 million vs. analyst estimates of $931.7 million. Zoom said it expects adjusted profit of about $1.14 at the midpoint of its guidance vs. estimates of 94 cents.
A “work-from-home” stock, Zoom faces tough year-over-year growth comparisons during 2021 after the coronavirus pandemic sparked demand for its videoconferencing software.
Zoom Stock Soared In 2020
Shares in Zoom Video climbed nearly 2% to near 334 in after-hours trading on the stock market today. In Tuesday’s regular trading session, Zoom stock slipped 1.2%.
After booming in 2020, Zoom stock has lagged other software growth stocks this year. Shares are down from an all-time intraday high of 588.84 on Oct. 19.
Zoom Earnings Guidance Raised
The company said it had 497,000 business customers, each with more than 10 employees, as of the April quarter’s end. That’s up 87% from the year-earlier period, the company said.
Zoom Video increased its full-year fiscal 2022 revenue outlook to a range of $3.975 billion to $3.99 billion. Analysts had estimated 43% revenue growth to $3.8 billion vs. a torrid 326% growth rate last year.
Zoom’s cloud-based software sets up audio and videoconferencing, with chat tools also available. Customers also can easily share content.
Zoom stock bulls argue that video calling is here to stay and will play a much larger role in businesses, schools and everyday lives.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.