Shares of Zoom Video Communications are gaining ground in late trading Monday after the video conferencing services company posted quarterly results that beat estimates.
Zoom shares were up more than 12% in after-hours trading following the report.
For the quarter ended January, Zoom posted revenue of $1.147 billion, up 2.6% from a year ago, and above the Wall Street consensus as tracked by FactSet of $1.129 billion.
Adjusted profits were $1.42 a share, beating the Street forecast of $1.15. Under generally accepted accounting principles, Zoom earned 95 cents a share.
Free cash flow was $332.7 million, up 81.5% from a year earlier. The company ended the quarter with $7 billion in cash, equivalents and marketable securities. Zoom also announced a new $1.5 billion stock repurchase program.
Zoom said it had 220,400 enterprise customers at quarter end, up 3.5% from a year earlier. Over the last 12 months, 3,810 customers contributed more than $100,000 in revenue, up 9.8%.
For the full fiscal year ended January 2024, the company posted revenue of $4.53 billion, up 3.1%. While enterprise revenue was up 8.7%, online revenue was down 3.8%.
For the April quarter, Zoom sees revenue of $1.125 billion, a little shy of the analysts' consensus for $1.31 billion, but with adjusted profits of $1.18 to $1.20 a share, above the Street's $1.13.
Zoom projected fiscal 2025 revenue of $4.6 billion, up 1.5% from fiscal 2024 and about in line with consensus. The company see profits on an adjusted basis of between $4.85 and $4.88 a share, above the Street consensus forecast of $4.66 a share.
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(END) Dow Jones Newswires
February 26, 2024 16:37 ET (21:37 GMT)
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