The developer of corporate video communications solutions Zoom Video Communications Inc. (ZM) has recently released analysts-beating quarterly results for the third quarter of fiscal year 2021. By dramatically rising revenue, the company surpassed Wall Street expectations.
Zoom’s revenue rose 367 percent year on year to $777.2 million in the quarter ended October 31, 2020. After adjustment, net income was $198.4 million, or $0.66 per share. The cash and cash equivalents at the quarter end amounted to $1.9 billion. Compared to $62 million a year ago, operating cash flow rose by 565 percent to $411 million.
The Zoom platform continues to expand rapidly: the number of clients with 10 or more workers reached 433,700 thousand during the period, which is 485 percent more than last year. The number of clients, with spending of $100,000 or more on Zoom’s services, increased by 136 percent to 1,289 during the reported quarter.
The coronavirus pandemic, which accelerated the transition to remote work and cloud computing, was clearly the growth engine for Zoom. But the factor of COVID-19 that contributed to an exponential rise in Zoom revenues is a temporary one. However, the company expects continued growth, albeit more moderate, in the future.
Zoom forecasted $806-$811 million in revenues and a non-GAAP income of $0.77-$0.79 per share in the current fourth quarter. Zoom expects $2.57-$2.58 billion in revenues for fiscal year 2021 while expectations for the non-GAAP earnings in the same period are in the range of $2.85-$2.87 per share.
During the last week, some investors took profits on Zoom Video Communications Inc. (ZM) shares, which is why the stock price marginally rose by nearly 1.40 percent in the past 5 sessions. The stock closed the trading session on Tuesday at a rise of 1.02 percent to $412.00 to bring its market capitalization to $118.19 billion. Since start of the year, the stock price rose by 505.53%.