Report from Zoom
Zoom reported record growth in quarterly revenues and profits, exceeding Wall Street estimates. Zoom's projections for the first quarter and full fiscal year 2022 are also above expectations.
Shares in Zoom Video Communications (ZM) rose 8.4% after the close of trading on Monday.
Zoom's IPO took place on 18 April 2019. The COVID-19 pandemic has made Zoom's product incredibly popular and the company's shares have risen sharply. Zoom provides a free 40-minute video call service, with a limited number of participants, and charges for the corporate service.
Over the past 12 months, Zoom shares have risen by more than 290%. The 7.7% drop in the stock over the last quarter is due to the emergence of COVID-19 vaccines and investor fears that bringing employees back into offices and students back into classrooms will reduce the company's earnings.
However, Zoom's report on Monday reassured investors as the company gave a strong outlook for the coming quarter and the current fiscal year. Zoom data for Q4 and full fiscal year 2021
Zoom reported fourth-quarter (ended 31 January 2021) earnings per share growth to $1.22, up strongly from last year's figure of $0.2 earnings per share.
Net profit for the quarter rose to $365.4m.
Revenue at Zoom continued to grow at a huge rate of more than 355% for the third consecutive quarter to $882.5m.
Zoom's total revenue for the full fiscal year 2021 rose 326% to $2.65 billion, with annual earnings per share of $3.34.
Zoom's year-end free cash flow rose to $1.4bn.
Zoom's forward-looking statements
Zoom's outlook for the first quarter of fiscal 2022 (February to April 2021):
- Revenue growth of about 175% to a range of $900m $905m.
- EPS $0.95 $0.97 also above Wall Street's average estimate of $0.72.
Forecast for full fiscal year 2022
Revenue growth in the range of $3.76bn. $3.78bn, annual earnings per share to rise to $3.59 $3.65, analysts had forecast $2.97.
Zoom is looking to create more revenue streams by adding products such as a cloud-based phone system to attract more large businesses as well as small and medium-sized enterprises.