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Zoom skyrockets 38% after reporting blockbuster earnings

  • Zoom Video Communications on Monday reported fiscal second-quarter earnings that exceeded Wall Street's expectations, showing that revenue was more than four times higher this year than last.¬†
  • Shares of Zoom skyrocketed as much as 38% in premarket trading Tuesday.¬†
  • The company also raised its full-year guidance significantly after the earnings beat.¬†

Shares of Zoom Video Communications skyrocketed as much as 38% in premarket trading Tuesday after the company on Monday reported fiscal second quarter 2021 earnings that handily beat Wall Street expectations. 

The company, which has become a preferred means of communication amid the coronavirus pandemic, also boosted its full-year guidance. 

Here are the key numbers:

  • Adjusted earnings per share:¬†92 cents reported, versus 45 cents (expected)
  • Revenue:¬†$663.5 million reported, versus $500.5 million (expected)¬†

The company said in a press release that revenue was up 355% from the same quarter a year ago, fueled by adding new users and expanding across existing customers. At the end of the second quarter, Zoom had 370,200 customers with more than 10 employees, a 458% jump on the year. 

Zoom also had 988 customers that contributed more than $100,000 in trailing 12-month revenue, up 112% from last year, according to a statement. 

Following the blockbuster quarter, Zoom boosted its guidance. The company now expects third-quarter revenue to be between $685 million and $690 million. 

For the full year, Zoom expects revenue to be between $2.37 billion and $2.39 billion, the company said. The updated revenue outlook "takes into consideration the demand for remote work solutions for businesses," Zoom said in a statement. "It also assumed increased churn in the second half of the fiscal year when compared to historic churn levels due to a higher percentage of customers who purchased monthly subscriptions in the first quarter." 

Zoom has gained roughly 340% year-to-date through Monday's close.

 

Carmen Reinicke , Business Insider US

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