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Zoom reports blowout earnings but warns of a coming slowdown

Tiger Newspress2021-06-02

Zoomreported better-than-expected first-quarter results Tuesday, with sales growth of 191%. The shares rose 4% in extended trading after initially falling as much as 5% as the company showed signs of a looming slowdown.Here’s how the company did:

  • Earnings:$1.32 per share, adjusted, vs. 99 cents per share as expected by analysts, according to Refinitiv.
  • Revenue:$956.2 million, vs. $906.0 million as expected by analysts, according to Refinitiv.

Revenue in the quarter, which ended on April 30, jumped from $328.2 million a year earlier, according to astatement. In the previous quarter revenuerose 369%as Zoom lapped the onset of the coronavirus pandemic in the U.S., which brought inmillions of new users.The company’s gross margin widened to 73.9% from 69.4% in the previous quarter, primarily because of optimization of public-cloud resources, the company said. Zoom said its Zoom Phone product, including cloud-based phone services along with video calls and other capabilities, had 1.5 million seats at the end of April, up from1 millionin January.

Zoom said it expects $1.14 to $1.15 in adjusted earnings per share on $985 million to $990 million in revenue in the fiscal second quarter. Analysts polled by Refinitiv had expected adjusted earnings of 94 cents per share and $931.8 million in revenue.

For the full 2022 fiscal year, Zoom now sees $4.56 to $4.61 in adjusted earnings per share and $3.98 billion to $3.99 billion in revenue. Analysts polled by Refinitiv had been looking for $3.76 in adjusted earnings per share and $3.8 billion in revenue.

Notwithstanding the after-hours move, shares of Zoom have fallen about 3% since the start of 2021, while the S&P 500 index is up nearly 12% over the same period.

During the quarter, Zoom announcedenhancements to its Zoom Rooms offeringfor meeting locations, as well as a$100 million venture-capital fund.

Executives will discuss the results with analysts on a Zoom call starting at 5 p.m. ET.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment76

  • Whyandwhynot
    ·2021-06-02
    Hmm it says slow down….
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  • hpt
    ·2021-06-02
    Fantastic 
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  • Ancy
    ·2021-06-02
    Zooming !
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  • JoelLee
    ·2021-06-02
    Please reply and like! Thanks!
    Reply
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    • SaveHK
      yes comment and likes back to all please?
      2021-06-02
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  • JoelLee
    ·2021-06-02
    Please reply and like! Thanks!
    Reply
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  • WayneLo
    ·2021-06-02
    Hmmm, will it go higher?
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  • TK360
    ·2021-06-02
     Please improve the zoom service n software. 
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  • Abspitz
    ·2021-06-02
    Is zoom worth buying?
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  • chanch
    ·2021-06-02
    Not sustainable growth
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  • BBBSIN
    ·2021-06-02
    Sell?
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  • Evey77
    ·2021-06-02
    It’s definitely a better product than others like WebEx, but I’m not sure it is worth its stock price.
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  • Oddleo
    ·2021-06-02
    Better to be prepared now 
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    • grrrr_nt
      yea
      2021-06-02
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    • andybian
      yes. pls like comment back.
      2021-06-02
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    • Oddleo
      Like n comment pls
      2021-06-02
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  • BrianLTS
    ·2021-06-02
    I believe Zoom can sustain the growth in next one or two years!
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    • oddox
      yes i think so
      2021-06-02
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    • PengsieX
      Watch the rear as Microsoft Teams is catching up real fast!
      2021-06-02
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  • Barbarazhao
    ·2021-06-02
    Impressive earnings report. I have share on ZOOM 
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    • Barbarazhao
      Thanks
      2021-06-02
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    • Oddleo
      Wow Good luck
      2021-06-02
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  • ehkay
    ·2021-06-02
    wed’s prediction? bullish or bearish?
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  • KelvinChan
    ·2021-06-02
    Like and comment ?
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  • Adollar
    ·2021-06-02
    Short term buy! 
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    • TeckLeong
      LiKed and comment back
      2021-06-02
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    • thugwin
      comment back?
      2021-06-02
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  • ChallengerDT
    ·2021-06-02
    any dividends?
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  • kianlin
    ·2021-06-02
    Hope zoom could sustain the growth
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    • Estada
      it takes still some time for economy to fully opens up so there is still some growth plus even if economy opens up, it can still be useful insome ways
      2021-06-02
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    • BrianLTS
      I think zoom still able to sustain the growth in near future!
      2021-06-02
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    • 超群yibo
      With national vacination programe, economy open up, ppl back to work.  Zoom usage will be affected.
      2021-06-02
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  • TW_30
    ·2021-06-02
    Like and comment ?
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