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.
surged 20% after hours, following a 0.5% decline in the regular session to close at $89.33.
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.
Revenue rose to $1.07 billion from $956.2 million in the year-ago quarter.
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 $1.07 billion to $1.08 billion.
“In Q1, we launched Zoom Contact Center, Zoom Whiteboard and Zoom IQ for Sales, demonstrating our continued focus on enhancing the customer experience and promoting hybrid work,” said Eric Yuan, Zoom chief executive, in a statement. “We believe these innovative solutions will further expand our market opportunity for future growth and expansion with customers.”
“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.
Read: Zoom is returning to the office, but most workers aren’t coming back
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.
For the year, however, Zoom hiked its forecast earnings to a range of $3.70 to $3.77 a share, while keeping its revenue forecast the same. Back in February, Zoom had forecast earnings of $3.45 to $3.51 a share and revenue of $4.53 billion to $4.55 billion for the year. Analysts expect $3.60 a share on revenue of $4.55 billion for the year.
Over the past 12 months, Zoom’s stock has dropped 72%, compared with a 5% decline by the S&P 500 index
and a 16% fall for the tech-heavy Nasdaq Composite Index