Zoom shares rise on solid guidance, Q2 earnings beat
SAN JOSE, Calif. – Zoom Video Communications , Inc. (NASDAQ:ZM) reported better-than-expected second-quarter earnings and provided upbeat guidance, sending its shares up 3% in after-hours trading on Monday.
The video conferencing giant posted adjusted earnings per share of $1.39, surpassing analyst estimates of $1.21. Revenue for the quarter came in at $1.16 billion, slightly above the consensus estimate of $1.15 billion and up 2.1% YoY.
Zoom’s Enterprise segment showed strength, with revenue growing 3.5% YoY to $682.8 million. The company also highlighted resilience in its Online business, reporting the lowest ever average monthly churn rate.
“In Q2, we outperformed our guidance across the board and grew operating cash flow and free cash flow by 33.7% and 26.2% YoY, respectively, demonstrating our continued commitment to efficient growth,” said Eric S. Yuan, Zoom founder and CEO.
Looking ahead, Zoom provided an optimistic outlook. For the third quarter, the company expects adjusted EPS of $1.29-$1.31, above the consensus of $1.24. Full-year adjusted EPS is projected at $5.29-$5.32, topping analyst expectations of $5.05.
The company also reported strong customer metrics, with customers contributing more than $100,000 in trailing 12-month revenue increasing by 7.1% YoY to 3,933.
Zoom also said its CFO Kelly Steckelberg will resign.
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