Zoom shares were active in after hours trading after the videoconferencing firm blew away estimates for fiscal first quarter revenue and raised its sales outlook.
Zoom (ZM) - Get Report recorded sales of $328.2 million for the fiscal first quarter, up 169% year-over-year and far outpacing an analyst consensus of $203.5 million. Its earnings of 9 cents per share were in line with estimates.
“We were humbled by the accelerated adoption of the Zoom platform around the globe in Q1. The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom. Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives,” said Zoom CEO Eric S. Yuan in a statement.
Zoom shares were up close to 3% immediately following the release before giving up ground and falling 3.90%. Shares ended the regular session at $208.08, up 1.9%.
For the full fiscal year ending January 2021, Zoom is guiding for between $1.775 billion and $1.8 billion in revenue, compared to its initial guidance of between $905 million to $915 million. For the current quarter, Zoom expects revenue of $495 million and $500 million.
"This revenue outlook takes into consideration the demand for remote work solutions for businesses. It also assumed increased churn in the second half of the fiscal year when compared to historic churn levels due to a higher percentage of customers who purchased monthly subscriptions in the first quarter," the company said.
The company reported approximately 265,400 customers with more than 10 employees in the first quarter, up 354% year over year, and 769 customers contributing more than $100,000 in revenue, up approximately 90%.
Heading into earnings, Zoom shares had more than tripled year to date, signaling high expectations for the stock, which closed at $208.08 per share on Tuesday.