Analysts’ Estimates Crushed
Zoom delivered a monster beat across the board to send its shares about 9% higher in the pre-open trading session Tuesday. The tech business saw its business revenue explode 369% to $882.5 million, from $188.25 million reported a year ago. Wall Street expected business revenue of $811.04 million.
The tech company said it earned $1.22 per share on an adjusted basis to crush the $0.79 per share the market analysts expected. Last year, Zoom reported earnings of $0.15 per share.
“The fourth quarter marked a strong finish to an unprecedented year for Zoom. In FY2021, we significantly scaled our business to provide critical communications and collaboration services to our customers and the global community in response to the pandemic,” Eric Yuan, CEO of the company, said in a statement.
“As we enter FY2022, we believe we are well positioned for strong growth with our innovative video communications platform, on which our customers can build, run, and grow their businesses; our globally recognized brand; and a team ever focused on delivering happiness to our customers.”
Zoom said it has 467,100 customers with ten or more employees. This represents a surge of 470% on a year-to-year (YOY) basis. Analysts expected the company to report 442,600 clients with 10+ employees.
For the ongoing quarter, the tech business projects revenue of $900 million to $905 million to top the $829.5 expected from market analysts. The company is hoping to report adjusted earnings of $0.95 to $0.97 per share to again easily top the $0.72 consensus. For the entire year, Zoom projects business revenue between $3.76 billion and $3.78 billion. The surveyed market analysts expected a full-year guidance of $3.53 billion.
Zoom is also making progress in the process of business diversification. Its Zoom Phone service, which allows online phone calls, has reached 1 million seats in January. This service is now available in 44 countries, the company said.
On the acquisition front, the company is interested in making a move if the right opportunity arises.
“We just haven’t quite found the right match yet,” finance chief Kelly Steckelberg said in a call with analysts.
Zoom reported a better-than-expected Q4 as the work-from-home boom extends into 2021.
About the Author
An analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in advanced analytics and media.