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





How much to expect from new Covid relief

After months of failed negotiations, lawmakers have finally agreed to a new $900 billion coronavirus relief package. Congressional leaders have not yet released text...

GameStop surges another 40% in the premarket to $490 as mania continues

Ramin Talaie | Bloomberg | Getty ImagesGameStop soared yet again, topping $490 apiece in premarket Thursday, as the Reddit-driven retail momentum continued to heat...

2021 Ford Ranger Looks Sharp with New SXT Special Edition Package

Ford says that 75 percent of Ranger customers opt for an appearance package on their trucks, whether it be the Black, Chrome, Sport,...

Discovery’s Class B shares spike 80% in unusual move

David ZaslavAnjali Sundaram | CNBCDiscovery's lightly traded class B shares surged 80% on Wednesday, showing a spike in volume and divergence from the...

SoftBank leads $250 million investment in Tier in first e-scooter bet

A woman holds her smartphone with the app of the electric scooter sharing provider Tier Mobility next to an e-scooter to use it....