Zoom outperforms in first-ever earnings report
2019 is a great year for Zoom (Nasdaq: ZM). The company outperformed analyst expectations with the release of its first earnings report on Thursday.
The profitable video communications business, which went public this April in one of the year’s most successful initial public offerings, posted revenues of $122 million for the three months ended April 30, 2019, representing a year-over-year increase of 109%.
The Zoom stock is rising in after-hours trading following the news. Zoom closed up 2% Thursday at just over $79 per share. The stock has been trading at more than double its initial offering price in the two months following its IPO.
“In our first quarter as a public company, strong execution and expanding adoption of Zoom’s video-first unified communications platform drove total revenue growth of 103% year-over-year,” Zoom founder and chief executive officer Eric Yuan said in a statement. “Delivering happiness to our customers is our number one priority. If we keep them happy, we believe we will succeed today and in the future.”
Zoom, once a relatively under-the-radar tech unicorn, continues to defy expectations. The company priced its IPO back in April at a meager $36 per share only to pop 81% at its Nasdaq debut.
In its first earnings report, the company beat expectations once again. Analysts had expected revenue of $111.4 million with adjusted earnings per share of just under 1 cent, compared to Zoom’s confirmed earnings of 3 cents per share.
For the full year, San Jose-based Zoom expects total revenue of between $535 million and $540 million and non-GAAP income (loss) from operations of between $0 and $3 million.
Under the hood on Zoom’s IPO, with founder and CEO Eric Yuan