Zoom shares surged by 13% in after-hours trading on Monday following the announcement of their fiscal fourth-quarter results. The company exceeded analysts’ expectations in several key areas, including earnings per share and revenue.
The company reported earnings per share of $1.22, adjusted, compared to the expected $1.15. Additionally, Zoom’s revenue came in at $1.15 billion, surpassing the $1.13 billion expected by analysts. While revenue showed a slight increase of less than 3% from the previous year, it was still a positive result for the company.
Zoom reported a net income of $298.8 million, or 98 cents per share, for the quarter ended Jan. 31. This was a significant improvement from the net loss of $104.1 million, or 36 cents per share, in the same quarter the previous year. The company has shown resilience and a strong financial performance.
Despite the positive results, Zoom is facing challenges in terms of achieving substantial growth. The company experienced single-digit growth, a stark contrast to the exponential growth it witnessed during the Covid-19 pandemic. Sales reorganization was cited as a factor that hindered growth in the fiscal fourth quarter.
Looking ahead, Zoom provided guidance for the fiscal first quarter, expecting $1.18 to $1.20 in adjusted earnings per share and $1.125 billion in revenue. This would represent a growth of less than 2% from the previous year. The company also projected adjusted earnings per share of $4.85 to $4.88 and $4.60 billion in revenue for the 2025 fiscal year.
Prior to the surge in share price, Zoom’s stock had been down 12% year-to-date, while the S&P 500 had gained 6% over the same period. The positive earnings report gave a much-needed boost to Zoom’s performance and investor confidence.
Overall, Zoom’s latest financial results showcase the company’s ability to adapt and thrive in a changing business landscape. While challenges persist, the company’s strong earnings and revenue performance indicate a promising future ahead. Investors will be closely watching Zoom’s growth trajectory and market performance in the coming quarters.
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