Zoom skyrockets 38% after reporting blockbuster earnings
- Zoom Video Communications on Monday reported fiscal second-quarter earnings that exceeded Wall Street's expectations, showing that revenue was more than four times higher this year than last.
- Shares of Zoom skyrocketed as much as 38% in premarket trading Tuesday.
- The company also raised its full-year guidance significantly after the earnings beat.
- Read more on Business Insider South Africa.
Shares of Zoom Video Communications skyrocketed as much as 38% in premarket trading Tuesday after the company on Monday reported fiscal second quarter 2021 earnings that handily beat Wall Street expectations.
The company, which has become a preferred means of communication amid the coronavirus pandemic, also boosted its full-year guidance.
Here are the key numbers:
- Adjusted earnings per share: 92 cents reported, versus 45 cents (expected)
- Revenue: $663.5 million reported, versus $500.5 million (expected)
The company said in a press release that revenue was up 355% from the same quarter a year ago, fueled by adding new users and expanding across existing customers. At the end of the second quarter, Zoom had 370,200 customers with more than 10 employees, a 458% jump on the year.
Zoom also had 988 customers that contributed more than $100,000 in trailing 12-month revenue, up 112% from last year, according to a statement.
Following the blockbuster quarter, Zoom boosted its guidance. The company now expects third-quarter revenue to be between $685 million and $690 million.
For the full year, Zoom expects revenue to be between $2.37 billion and $2.39 billion, the company said. The updated revenue outlook "takes into consideration the demand for remote work solutions for businesses," Zoom said in a statement. "It also assumed increased churn in the second half of the fiscal year when compared to historic churn levels due to a higher percentage of customers who purchased monthly subscriptions in the first quarter."
Zoom has gained roughly 340% year-to-date through Monday's close.
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