Zoom Has Another Epic Quarter But Warns of a Slowdown

Video conferencing company Zoom reported its financial results this week, revealing a blowout quarter for earnings.

The company’s first quarter results had exceeded estimates all across the board with sales growth of 191%.

For the quarter which ended on April 30th, Zoom reported earnings per share of $1.32 a share adjusted. This is compared to the 99 cents a share that was expected by analysts per Refinitiv.

Revenue at $956.2 million was also better than the $906 million that was expected by analysts, according to Refinitiv.

Revenue had seen a significant increase from the $328.2 million reported a year earlier. In the previous quarter, revenue had surged 369%.

The company’s gross margin widened to 73.9% from 69.4% in the previous quarter, primarily because of optimization of public-cloud resources. Zoom said its Zoom Phone product, including cloud-based phone services along with video calls and other capabilities, had 1.5 million seats at the end of April, up from 1 million in January.

Looking ahead, Zoom now sees 50% revenue growth for the full fiscal year.

The company said it expects $1.14 to $1.15 in adjusted earnings per share on $985 million to $990 million in revenue in the fiscal second quarter. Analysts polled by Refinitiv were waiting for adjusted earnings of 94 cents per share and $931.8 million in revenue.

For the full 2022 fiscal year, Zoom now sees $4.56 to $4.61 in adjusted earnings per share and $3.98 billion to $3.99 billion in revenue. Analysts polled by Refinitiv had anticipated $3.76 in adjusted earnings per share and $3.8 billion in revenue.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.