Zoom Video this afternoon reported fiscal Q1 revenue and profit that topped Wall Street’s expectations and an outlook that was higher as well, and raised its year revenue and profit outlook.
The report sent Zoom shares down 3% in late trading.
CEO and founder Eric Yuan called it “a very strong first quarter,” noting 191% year-over-year revenue growth and “strong profitability and cash flow.”
Added Yuan, “We have also opened our technology portfolio to developers through our powerful video SDK and to businesses to expand their reach through Zoom Events.
“Work is no longer a place, it’s a space where Zoom serves to empower your teams to connect and bring their best ideas to life. We are energized to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections.”
Revenue in the three months ended in April rose 191%, year over year, to $956 million, yielding a net profit of $1.32 a share, excluding some costs.
Analysts had been modeling $908 million and 99 cents per share.
Zoom offered some selected business metrics:
Approximately 497,000 customers with more than 10 employees, up approximately 87% from the same quarter last fiscal year.1,999 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 160% from the same quarter last fiscal year.A trailing 12-month net dollar expansion rate in customers with more than 10 employees above 130% for the 12th consecutive quarter.
For the current quarter, the company sees revenue of $985 million to $990 million, and EPS in a range of $1.14 to $1.15, again, excluding some costs. That compares to consensus for $935 million and a 96-cent profit per share.
For the full year, the company raised its revenue outlook to a range of $3.975 billion to $3.990 billion, up from prior range of $3.76 billion to $3.78 billion. That compares to consensus of $3.8 billion.
Profit per share is now seen in a range of $4.56 to $4.61, up from $3.69 to $3.65, and above consensus of $3.77.