Zoom Video Communications Inc.’s stock initially popped 5% in extended trading Monday after the videoconferencing-service giant posted revenue, earnings and guidance that beat Street estimates.
Zoom
ZM,
reported fiscal third-quarter net income of $340.4 million, or $1.11 a share, compared with net income of $198.4 million, or 66 cents a share, in the year-ago quarter. The company’s adjusted net earnings were $338.4 million, or $1.11 a share.
Net revenue soared 35% to $1.05 billion from $777.2 million a year ago.
“Looking forward, we expect to close the year between $4.079 to $4.081 billion in total revenue, representing approximately 54% year-over-year growth, alongside strong profitability and operating cash-flow growth,” Zoom Chief Executive Eric Yuan said in a statement announcing the results. The company said it had surpassed 512,100 customers with more than 10 employees, up 18% from the same quarter a year ago.
Analysts surveyed by FactSet had expected net income of $1.09 a share on revenue of $1.02 billion. Analysts are projecting $4.01 billion is fiscal year revenue.
Shares of Zoom have declined 28% this year. The S&P 500 index
SPX,
is up 25% in 2021.
This post was originally published on Market Watch
