Zoom’s stock surges 41% on earnings, adding over $37 billion in value


Eric Yuan, CEO of Zoom Video Communications poses for a photo after he took part in a bell ringing ceremony at the NASDAQ MarketSite in New York, April 18, 2019.

Carlo Allegri | Reuters

Zoom shares soared 41% on Tuesday, lifting the video-conferencing software company’s market cap to $129 billion after revenue and earnings blew past analysts’ estimates.

The rally added $37 billion of market value to Zoom, which went public in April 2019 and was worth about $16 billion after its initial day of trading. The company has been perhaps the biggest corporate beneficiary of the coronavirus pandemic, as employers across the globe have turned to the video chat technology to stay connected with staffers, customers and partners. 

Revenue in the period surged 355% to $663.5 million, topping the $500.5 million average estimate of analysts, according to Refinitiv. Adjusted earnings per share of 92 cents more than doubled analysts’ estimates for profit or 45 cents a share. Zoom’s net income for the period was more than triple its profit for the last six quarters combined.

The number of customers producing $100,000 or more in annual revenue for Zoom more than doubled from a year earlier to 988. CEO Eric Yuan highlighted Exxon, Activision and ServiceNow on the earnings call.

“With the pandemic persisting, we are committed to work hard and are humbled by our role of enabling communications worldwide during this challenging time,” Yuan said.

Zoom also raised its guidance for the full 2021 fiscal year. Revenue will be $2.37 billion to $2.39 billion, implying 282% growth in the middle of the range, topping the average analyst estimate for sales of $1.81 billion.

Zoom is now among the 20 most valuable U.S. tech companies, with a market cap higher than IBM and more than twice as large as that of VMware. 

— CNBC’s Jordan Novet contributed to this report

WATCH: RBC analyst says Zoom helped save the economy



Source link

Discover

Sponsor

Latest

White House signals it could tweak check plan in relief

The Biden administration could be open to adjusting eligibility levels for the next round of coronavirus stimulus checks to ensure the relief flows...

Stock moves mark end of ‘tyranny of the index funds’

After a down day for stocks in Wednesday's session, CNBC's Jim Cramer said the market is giving investors a chance to buy individual...

The future of the aircraft carrier

The importance of aircraft carriers in military history cannot be overstated.Aircraft carriers helped the United States win key naval battles in World War...

Health experts wary about a possible new wave

People watch a film at an outdoor cinema in Muzeon Park of Arts during the 2020 Cinema Night in Moscow.Anton Novoderezhkin | TASS...

The stock market shakeout is likely not over yet, even with Friday’s comeback

A pedestrian outside the New York Stock Exchange in New York, July 29, 2020.Wang Ying | Xinhua News Agency | Getty ImagesThe tech...