Zoom Trounces Second Quarter Estimates, Raises Outlook
Zoom stock was soaring in after-hours trading on Monday after the communications firm topped estimates on second-quarter earnings and raised its sales outlook.
For the quarter ending in July, Zoom reported total sales of $663.5 million, up 355% year-over-year and well ahead of an analyst consensus of $500 million. Its non-GAAP net income came in at 92 cents per share, above a consensus of 45 cents.
Shares of Zoom (ZM) were up 4% in the minutes following its second quarter earnings release.
“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom's video-first platform,” said Zoom CEO Eric Yuan in a statement.
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For the current quarter, Zoom expects total revenue of between $685 and $690 million and non-GAAP income of 73 or 74 cents. For the full fiscal year, Zoom raised its sales guidance to between $2.37 billion and $2.39 billion, representing a year-over-year increase of 281% to 284%, alongside earnings of between $2.40 and $2.47. Its prior full-year sales guidance, issued in its first-quarter earnings release, was between $1.775 and $1.8 billion.
At the close of the second quarter, Zoom had 370,200 customers with more than 10 employees, up approximately 458% from the same quarter last fiscal year, and 988 customers contributing more than $100,000, up 112% year-over-year.
Shares of Zoom, the poster child of stay-at-home stocks, were up nearly 380% year to date heading into earnings.
During the second quarter, Zoom rolled out a number of new product offerings, including a $599 videconferencing system called Zoom for Home, and is building out its API (application programming interface) and SDK (software development kit) to entice more developers to build on the platform.
