Zoom Video Communications forecast full-year revenue that would exceed analysts’ estimates, indicating that the video conferencing service expects to remain a ubiquitous presence in daily life even as the pandemic subsides. Shares rose about 10 percent during extended trading.
Revenue will rise to $3.78 billion in fiscal 2022, the San Jose, California-based company said Monday in a statement. While the estimated annual revenue growth of 43 percent is far from Zoom’s 326 percent increase in the fiscal year ended Jan. 31, it exceeded analysts’ 37 percent average estimate, according to data compiled by Bloomberg. Earnings, excluding some items, will be as high as $3.65 per share. Analysts were counting on $2.97.
Investors feared that the software maker would not be able to continue its dramatic growth in 2020 as people sent home by the coronavirus connected remotely to work, school, friends and family through the service. While Zoom’s shares nearly quintupled last year as it became one of the biggest beneficiaries of the pandemic, it gained just 11 percent during the first two months of 2021 before rising nearly 10 percent Monday to close at $409.66 in New York. Chief Executive Officer Eric Yuan sought to diversify Zoom’s capabilities and add products, such as a cloud phone system, to appeal to more large enterprises and small and medium-sized businesses.
“We believe we are well positioned for strong growth with our innovative video communications platform, on which our customers can build, run and grow their businesses; our globally recognized brand; and a team that is always focused on delivering happiness to our customers,” Yuan said in the statement.
Revenue more than tripled to $882.5 million in the fiscal fourth quarter, the company said. Analysts had estimated an average of $811 million. Earnings, excluding some items, were 1.22 cents per share, compared with an average estimate of 79 cents.
Zoom forecasts full-year sales with sign of growth after Covid-19 pandemic