Zoom stock soared 20% after-hours on Q1 results

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Zoom Video Communications Inc (NASDAQ: ZM) stock jumped 20% in extended trading after the video conferencing company reported solid Q1 results and raised its guidance for the full year.

Key takeaways from Zoom Q1 earnings report

  • Net income printed at $113.6 million versus the year-ago figure of $227.4 million.
  • Per-share earnings of 37 cents were significantly below last year’s 74 cents.
  • On an adjusted basis, EPS stood at $1.03 in the recent financial quarter.
  • Revenue went up 12% YoY to $1.07 billion, as per the earnings press release.
  • FactSet consensus was for 88 cents of adjusted EPS on $1.07 billion in revenue.
  • Operating margin was 17.4% and Zoom Phone reached 3 million seats in Q1.

The San Jose-headquartered company noted a 24% increase in Enterprise customers. ZM is still down more than 40% for the year.

Zoom Video Communications’ outlook for fiscal 2022

For fiscal 2022, Zoom now forecasts its earnings to fall between $3.70 and $3.77. It expects up to $4.55 billion in revenue this year. In comparison, analysts had called for $3.60 of EPS on roughly the same revenue.

Zoom’s Q2 guidance was slightly better-than-expected as well. In the earnings press release, CEO Eric Yuan said:

In Q1, we launched Zoom Contact Centre, Zoom Whiteboard, and Zoom IQ for Sales, demonstrating our continued focus on enhancing customer experience and promoting hybrid work. We believe these innovative solutions will further expand out market opportunity for future growth and expansion with customers.

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Source: https://invezz.com/news/2022/05/23/zoom-stock-soared-20-after-hours-on-q1-results/