Zoom Video Communications Inc (NASDAQ:ZM) stock has soared to new highs in after-hours trading after its posted stronger than expected quarterly earnings and raised its revenue forecast for the full year.
The company, which has in 2020 become synonymous with video conferencing at home and in the office, reported revenue of US$663.5mln for the three months to July 31, a 355% increase on the same quarter last year and more than the entire US$622.3mln generated for the whole of 2019.
Adjusted net income came out at US$185.7mln for what was its second quarter, or 63 cents a share.
The Wall Street analysts consensus was for 45 cents a share after the company guided to 44-46 cents a share on revenues of US$495-500mln.
At the end of July, Zoom Video had roughy 370,200 business customers with more than 10 employees, up more than fivefold from a year ago.
Just under a thousand customers contributed more than US$100,000 in trailing 12-month revenues, a little over double the position from this time last year.
The San Jose, California-based company guided to revenue of US$685-690mln for the third quarter, compared to previous average analyst estimates of US$492.9mln, with management forecasting adjusted earnings of between 73 cents and 74 cents per share versus previous estimates of 35c per share.
For the full year, revenues of US$2.37-2.39bn were estimated, up from the company’s previous forecast of around US$1.8bn.
“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom's video-first platform,” said founder and chief executive officer Eric S Yuan.
Zoom Video stock was up 22% to US$399.02 in pre-market trading on Tuesday, up more than 370% since the start of the year and over 11 times higher than the US$36 at which its initial public offer was priced in April last year.