Zoom Video Communications Inc. shares soared in the extended session Monday after the videoconferencing company topped Wall Street’s earnings expectations and said it expects to be more profitable this year than it had initially expected.
The company reported first-quarter net income of $113.6 million, or 37 cents a share, compared with $227.4 million, or 74 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.03 a share, compared with $1.32 a share in the year-ago period.Analysts surveyed by FactSet had forecast earnings of 88 cents a share on revenue of $1.07 billion, based on Zoom’s forecast of 86 cents to 88 cents a share on revenue of $1.
“Additionally in Q1, we delivered revenue of over $1 billion driven by ongoing success in Enterprise, Zoom Rooms and Zoom Phone, which reached 3 million seats during the quarter,” Yuan said.Zoom forecast earnings of 90 cents to 92 cents a share on revenue of about $1.12 billion for the second quarter, while analysts expected 88 cents a share on revenue of $1.11 billion.