Zoom Video Communications Quarterly Results

Zoom Video Communications Surpasses Expectations in Quarterly Results

Shares of Zoom Video Communications are on the rise in late trading on Monday after the company exceeded expectations in its quarterly results.

Impressive Financial Performance

• Revenue of $1.147 billion for the quarter ended January, up 2.6% from a year ago, surpassed Wall Street's consensus of $1.129 billion.

• Adjusted profits of $1.42 per share outperformed the Street forecast of $1.15.

• Free cash flow increased by 81.5% to $332.7 million from the previous year.

• The company closed the quarter with $7 billion in cash, equivalents, and marketable securities.

• Announced a new $1.5 billion stock repurchase program.

Key Performance Indicators

• Ended the quarter with 220,400 enterprise customers, reflecting a 3.5% increase from the previous year.

• 3,810 customers contributed over $100,000 in revenue over the last 12 months, marking a 9.8% growth.

Outlook and Projections

• Full fiscal year 2023 revenue amounted to $4.53 billion, up 3.1%, with enterprise revenue increasing by 8.7% and online revenue declining by 3.8%.

• For the upcoming quarter (April), Zoom expects a revenue of $1.125 billion and adjusted profits ranging between $1.18 and $1.20 per share.

• Projecting fiscal 2025 revenue to reach $4.6 billion - a 1.5% increase from fiscal 2024, with adjusted profits per share forecasted between $4.85 and $4.88, exceeding the Street consensus forecast of $4.66.

In Conclusion

Zoom Video Communications continues to demonstrate strong financial performance with a positive projection for future growth and profitability trends.