Zoom shares jump as quarterly results beat on top and bottom lines

Zoom
shares
rose
as
much
as
13%
in
extended
trading
on
Monday
after
the
video
chat
software
vendor
announced
fiscal
fourth-quarter
results
that
topped
analysts’
expectations.

Here’s
how
the
company
did,
compared
with
consensus
among
analysts
polled
by
LSEG,
formerly
known
as
Refinitiv:

• 
  Earnings
  per
  share:
  $1.22
  adjusted
  vs.
  $1.15
  expected
• 
  Revenue:
  $1.15
  billion
  vs.
  $1.13
  billion
  expected

Revenue
increased
less
than
3%
from
$1.12
billion
a
year
earlier,
according
to
a

statement.
The
company
reported
net
income
of
$298.8
million,
or
98
cents
per
share,
for
the
quarter
that
ended
Jan.
31,
compared
with
a
net
loss
of
$104.1
million,
or
36
cents
per
share,
in
the
year-ago
quarter.

Far
from
its
heyday
during
the
Covid-19
pandemic,
when
a
surge
in
the
number
of
remote
workers
sent
revenue
up
over
100%
for
five
straight
quarters,
Zoom
is
now
mired
in
single-digit
growth.

Growth
would
have
been
faster
in
the
fiscal
fourth
quarter
if
not
for
a
sales
reorganization.
It
“took
a
lot
of
time
for
the
organization
to
recover
from,
frankly,”
Kelly
Steckelberg,
Zoom’s
finance
chief,
said
on
a
conference
call
with
analysts.

At
the
end
of
the
fiscal
fourth
quarter,
Zoom
had
220,400
enterprise
customers,
up
from
219,700
at
the
end
of
the

prior
quarter.

Zoom’s
Team
Chat
migration
tool
“has
seen
a
4x
increase
in
downloads
in
the
last
six
months,”
Eric
Yuan,
the
company’s
founder
and
CEO,
said
during
the
call.
He
said
Zoom
hasn’t
done
a
great
job
of
marketing
its
chat
capabilities.

For
the
fiscal
first
quarter,
Zoom
called
for
$1.18 to $1.20 in
adjusted
earnings
per
share
on
$1.125
billion
in
revenue,
which
would
represent
growth
of
less
than
2%
from
a
year
earlier.
Analysts
surveyed
by
LSEG
were
looking
for
$1.13
in
adjusted
earnings
per
share
and
$1.13
billion
in
revenue.

For
the
2025
fiscal
year,
Zoom
sees
$4.85 to $4.88 in
adjusted
earnings
per
share,
with
$4.60
billion
in
revenue,
implying
1.6%
revenue
growth.
The
LSEG
consensus
was
adjusted
earnings
of
$4.71
per
share
and
revenue
of
$4.65
billion.

Before
the
jump,
Zoom
shares
were
down
12%
so
far
this
year,
while
the
S&P
500
stock
index
had
gained
6%
during
the
same
period.

WATCH:

Boris
Schlossberg
on
Zoom:
‘It
has
a
chance
to
really
shine
going
forward’