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Zoom Beats Earnings in Q2 as Work From Home Trend Triggers Surge in Activity

imageStock Markets8 hours ago (Aug 31, 2020 04:25PM ET)

By Yasin Ebrahim – Zoom Video Communications (NASDAQ:ZM) (NASDAQ:ZM) reported Monday second-quarter earnings and revenue that markedly beat consensus estimates as the pandemic-led home-work-from trend boosting demand for video conference software.

The company reported earnings 92 cents, up from 8 cents a year earlier, on revenue of $663.5 million, up 355%, beating estimates for earnings of 45 cents on revenue $500.5 million.

“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform. At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases,” said Zoom founder and CEO, Eric S. Yuan. “Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth of 355% year-over-year in Q2 and enabled us to increase our revenue outlook to approximately $2.37 billion to $2.39 billion for FY21, or 281% to 284% increase year-over-year.”

Growth in customers with more than 10 employees jumped 458% year-on-year, the company said.

For the third quarter, the company sees earnings in the range of 73 cents to 74 cents on revenue of $685 million to $690 million.

Shares of Zoom jumped more than 8% in after-hours trading.

Zoom Beats Earnings in Q2 as Work From Home Trend Triggers Surge in Activity

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