Eric Yuan, founder and CEO of Zoom Video Communications, stands before the opening bell during the company’s initial public offering on the Nasdaq Marketsite in New York, April 18, 2019. Mr.
Victor J. Blue | Bloomberg | Getty Images
zoom Shares rose as much as 13% in after-hours trading Monday after the video chat software vendor reported fourth-quarter earnings that beat analysts’ expectations.
Here’s how the company performed compared to the consensus of analysts surveyed by LSEG (formerly Refinitiv):
- Earnings per share: Adjusted $1.22 vs. expected $1.15
- Revenue: $1.15 billion vs. $1.13 billion expected
Revenue rose less than 3% from $1.12 billion in the same period last year, according to a survey. statement. The company reported net income of $298.8 million, or 98 cents per share, for the quarter ended Jan. 31, compared with a net loss of $104.1 million, or 36 cents per share, in the year-ago period. )was.
Zoom is far from its heyday during the COVID-19 pandemic, when its revenue rose more than 100% for five straight quarters as the number of remote workers surged, and is now stuck in a quagmire of single-digit growth.
Without the sales restructuring, growth would have been faster in the fourth quarter of the fiscal year. “Frankly, it took a lot of time for the organization to recover,” Zoom finance chief Kelly Steckelberg said on a conference call with analysts.
At the end of the fiscal fourth quarter, Zoom had 220,400 business customers, up from 219,700 at the end of the fiscal year. last quarter.
Zoom’s Team Chat migration tool “has seen a 4x increase in downloads over the past six months,” Eric Yuan, the company’s founder and CEO, said on a conference call. He said Zoom hasn’t done a good job of marketing its chat features.
For its fiscal first quarter, Zoom expects adjusted earnings per share of $1.18 to $1.20 on revenue of $1.125 billion, representing less than 2% year-over-year growth. Analysts surveyed by LSEG had expected adjusted earnings per share of $1.13 and revenue of $1.13 billion.
For fiscal 2025, Zoom expects adjusted earnings per share to be in the range of $4.85 to $4.88 on revenue of $4.6 billion, representing 1.6% revenue growth. LSEG’s consensus was for adjusted earnings per share of $4.71 and revenue of $4.65 billion.
Before the surge, Zoom stock was down 12% since the beginning of the year, while the S&P 500 index was up 6% over the same period.
clock: Boris Schlossberg on Zoom: ‘We have a real chance to shine’
