Zoom CEO Eric Yuan speaks before Nasdaq’s opening ceremony in New York on April 18, 2019.
Kena Betancur | Getty Images
Zoom shares climbed nearly 7% in extended trading on Monday after the video chat company reported fourth-quarter financial results that topped analysts’ estimates and offered upbeat profit guidance for the year.
Here’s how the company did it:
- Earnings: $1.22 per share, adjusted, versus 81 cents as expected by analysts, according to Refinitiv.
- Income: $1.12 billion, compared with the $1.10 billion expected by analysts, according to Refinitiv.
Zoom’s revenue rose 4% year-over-year in the quarter that ended Jan. 31, according to a statement. That’s a dramatic drop from the quadrupling of revenue Zoom enjoyed in 2020 and 2021, as consumers and businesses flocked to the video service during the Covid pandemic.
The company had its first net loss since 2018 during the quarter, losing $104 million, compared to a net profit of about $491 million for the same period a year earlier.
Growth will continue to slow this year. Zoom sees between $4.435 billion and $4.455 billion in revenue, representing growth of 1.1%, while analysts expected sales of $4.6 billion. The company said adjusted earnings per share will be between $4.11 and $4.18, beating the average estimate of $3.66.
For the fiscal first quarter, adjusted earnings will be 96 cents to 98 cents per share on revenue of $1.080 billion to $1.085 billion. Analysts surveyed by Refinitiv had expected 84 cents in adjusted earnings per share and $1.11 billion in revenue.
Excluding the after-hours move, Zoom’s stock is up 8% for the year, while the S&P 500 is up 3% over the same period.
During the fiscal fourth quarter, Zoom said it would introduce email and calendar services, along with a virtual agent chatbot to handle customer service requests.
Executives will discuss the results with analysts on a conference call beginning at 5 p.m. ET.
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