It is not a secret that companies around the world suffered heavy losses due to the coronavirus pandemic. However, Zoom Video Communications was able not only to deal with the pandemic but to generate profit as well. Notably, due to restrictions, millions of people spent most of their time at home for several months. Consequently, they became more dependent on Zoom’s video-calling software for business, educational, and personal use in the quarter.
Zoom hired information security and diversity leaders. Also, the company announced plans for research and development centers in Phoenix and Pittsburgh. Moreover, Zoom acquired secure messaging start-up Keybase.
Zoom and fiscal second-quarter results
This week, Zoom reported fiscal second-quarter earnings. It is worth mentioning that, second-quarter earnings surpassed expectations. Zoom raised its full-year guidance.
The company’s market cap now stands at more than $129 billion. Consequently, Zoom’s market is now larger than IBM as well as AMD.
Interestingly, the average monthly users’ number in the fiscal second-quarter reached 148.4 million, up by 4’700 a year on year.
Notably, with respect to guidance, Zoom sees fiscal third-quarter earnings of 73 cents to 74 cents per share on an adjusted basis and revenue between $685 million to $690 million.
It is worth mentioning that, San Jose-based company raised its guidance for the full 2021 fiscal year. The company called for $2.40 to $2.47 in adjusted earnings per share and $2.37 billion to $2.39 billion in revenue. As a reminder, the company’s prior full-year guidance was $1.21 to $1.29 in adjusted earnings per share on $1.78 billion to $1.80 billion in revenue.
Zoom’s revenue grew 355% on an annualized basis in the second fiscal quarter. In the first fiscal quarter, revenue rose by 169%. Interestingly, new customers accounted for 81% of revenue growth.
Last but not least, the Zoom’s income neared $186 million. Last year in the second fiscal quarter, the income was $5.5 million. Moreover, the company increased its adjusted gross margin to 72.3% from 69.4% from one quarter earlier.
COMMENTS