Zoom Video Communications Inc (NASDAQ: ZM) said on Monday its revenue topped $1.0 billion for the first time in its fiscal second quarter on sustained demand for videoconferencing.
“In the second quarter, we achieved our 1st billion-dollar revenue quarter while delivering strong profitability and cash flow,†CEO Eric Yuan said in a statement.
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Shares of the company, however, tanked more than 10% in after-hours trading on weaker-than-expected Q3 guidance.
Financial results
Zoom reported $317 million in Q2 profit that translates to $1.04 per share or $1.36 a share adjusted. In the same quarter last year, its net income was capped at $186 million or 63 cents per share.
The U.S. software company generated $1.02 billion in revenue versus the year-ago figure of $663.5 million. This 54% annualised growth marked the smallest for Zoom in its on-record history. According to FactSet, experts had forecast $1.16 of adjusted EPS on $991 million in revenue.
Customer base
Zoom concluded the second quarter with 504,900 customers – an increase from roughly 497,000 customers at the end of the prior quarter. Over the past twelve months, it added, 2,278 customers brought in over $100,000 in revenue. In Q1, that number stood at 1,999.
In the recent quarter, the California-based company acquired Five9 Inc to penetrate the $24 billion contact-centre market.
Future guidance
For the third quarter, Zoom expected up to $1.08 of adjusted EPS compared to the FactSet consensus of $1.10. It, however, raised its guidance for the full year to $4.75 to $4.79 of adjusted EPS on up to $4.02 billion in revenue.
The average price target on Zoom currently stands at $423 that represents about a 40% upside from here.
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