Shares of Zoom Video Communications Inc. (ZM) - Get Report rose after the video communication company reported fiscal first quarter results that topped analyst estimates and issued strong guidance for the second quarter and full year.
Zoom reported April quarter earnings of $1.32 per share on revenue of $956.2 million. Analysts polled by FactSet were expecting earnings of 99 cents per share on revenue of $908 million.
"We kicked off the fiscal year with a very strong first quarter, posting 191% total year-over-year revenue growth combined with strong profitability and cash flow," said CEO Eric Yuan in a statement.
The firm raised its revenue guidance for the year to between $3.975 billion and $3.99 billion with earnings between $4.56 per share and $4.61 per share. Analysts are expecting revenue of $3.8 billion with earnings of $3.77 per share.
Zoom Video shares were rising 1.3% to $331.95 Tuesday after hours.
For the fiscal second quarter, Zoom expects revenue between $985 million and $990 million with earnings between $1.14 and $1.15 per share, compared to analyst estimates of $934 million in revenue with earnings of 96 cents per share.
"We are energized to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections," Yuan said.
In April, the company unveiled a $100 million venture fund to collaborate and build a larger ecosystem of apps and other hardware products, as the company braces for a post-pandemic world.
Portfolio companies will receive initial investments between $250,000 and $2.5 million to build solutions that will become core to how Zoom customers meet, communicate and collaborate, the company said.