Zoom shares surge after reporting quarterly sales beat, strong guidance

Zoom shares surge after reporting quarterly sales beat, strong guidance

Zoom (ZM) topped Wall Street’s expectations during its first quarterly results as a public company.

The video conferencing software company on Thursday reported first-quarter sales that more than doubled over last year to $122 million, ahead of expectations for $111.4 million, according to Bloomberg estimates. Adjusted earnings per share were 3 cents, ahead of expectations for just under a penny per share.

The San Jose, California-based company guided toward second-quarter adjusted EPS of between 1 cent and 2 cents, with the midpoint above consensus expectations for a penny per share. Zoom sees full-year adjusted EPS of between 2 and 3 cents, also ahead of estimates, and full-year revenue in a range of between $535 million and $540 million. Wall Street had anticipated $522.2 million in sales for the year.

“Strong execution and expanding adoption of Zoom’s video-first unified communications platform drove total revenue growth of 103% year-over-year,” Zoom CEO Eric Yuan said in a statement. “While we remain focused on strong growth, we are also pleased that our highly efficient business model and disciplined investment approach contributed to positive non-GAAP profitability and free cash flow.”

Shares of Zoom rose 20.18% to $95.65 each as of 9:30 a.m. ET Friday. […]

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