By Yasin Ebrahim
Investing.com - Zoom reported fiscal first-quarter earnings that markedly beat estimates on both the top and bottom lines as the lockdown worldwide accelerated demand for its videoconferencing software.
Shares of Zoom Video Communications (NASDAQ:ZM) rose about 2% in after-hours trade.
The company reported earnings of 20 cents a share, up from $0.00 a share year-on-year, and above estimates of 9 cents a share. Revenue for the quarter was up 169%, to $328.2 million, topping estimates for $202.32. million
In a sign of the rampant demand for videoconferencing software amid pandemic-led lockdowns, Zoom customers with more than 10 employees jumped by 354% year-over-year.
The number of customers contributing more than $100,000 in revenue each jumped 90% from the same period last year.
“We were humbled by the accelerated adoption of the Zoom platform around the globe in Q1. The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom," the company said in a statement.
Looking ahead, the company guided fiscal second-quarter earnings in the range of $0.44 and $0.46 a share on revenue of between $495.0 million and $500 million.
Full-year earnings are expected to be between $1.21 and $1.29 a share on revenue of between $1.775 billion and $1.800 billion.