Zoom posts blockbuster earnings but cautious of slowdown

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Zoom posts blockbuster earnings but cautious of slowdown

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 Zoom posts blockbuster earnings but cautious of slowdown
Image source: © Danielconstante | Megapixl.com

Summary

  • Revenue almost triples; earnings up 9x
  • The company expects slowdown going forth.
  • Shares zoom in the aftermarket.

The revenues of Zoom Video Communications, Inc. (NASDAQ:ZM) multiplied about three-times in the first quarter of current financial year, as company continued to cash in on virtual shifts amid rising COVID-19 cases.

The revenue of the company stood at US$956.24 million in the quarter ended April 2021, up almost three times from US$328.17 million reported in the corresponding quarter last year.

The financial year of the company begins from February 1 and ends on January 31.

The net profit of the company, for the quarter, stood at US$227.38 million, nine-times more than US$27.04 million reported a year-ago.

“We kicked off the fiscal year with a very strong first quarter, posting 191% total year-over-year revenue growth combined with strong profitability and cash flow. Our steadfast commitment to empowering customers to work and learn from anywhere with our expansive, innovative, and frictionless video communications platform continued to drive our results,” said Zoom founder and CEO, Eric S Yuan.

The communication tech giant almost doubled its free cash flow during the quarter, which stood at US$454.23 million.

However, as vaccinations in most of the western world surge and the pandemic situation continues to ease, the company has taken a cautious stance and thinks that it might face slowdown going forth. The company expects total revenue in the range of US$985 million and US$990 million. For the full year, total revenue is expected to be in the range of US$3.975 billion and US$3.990 billion.

The shares of the company, as result, surged over 4% in the after-market trade in New York.

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