Zoom Shares Soar Over 40% As Workers Stay Home During Coronavirus Pandemic
Shares of Zoom Video Communications (ZM) soared over 40% on Tuesday after the video-conferencing platform released its second-quarter fiscal 2021 earnings report Monday afternoon.
The company reported Q2 revenue growth of 355% year-over-year as employees across the world worked from home and used the Zoom platform to remotely communicate with colleagues during the coronavirus pandemic.
The pandemic has led several employers to keep their workers home even as stay-at-home orders eased to help prevent the spread of the virus. Amazon announced that workers would not return to the office until at least January 2021, and Google has said that it doesn’t expect workers to return until July 2021. Twitter announced that its employees could continue to work remotely “forever.”
The massive increase in revenue for Zoom caused it to raise its revenue outlook for fiscal 2021 to $2.39 billion, up from the $2.37 billion, or a 284% increase, up from 281%, year-over-year as was previously reported by the company. Total revenue for the company for the quarter was $663.5 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,” Zoom founder and CEO Eric S. Yuan said in a statement.
Zoom’s total cash, cash equivalents, and markets securities as of July 31 were $1.5 billion with a net cash flow of $401.3 million for the quarter compared to $31.2 million for fiscal Q2 2020. Free cash flow was $373.4 million compared to $17.1 million for Q2 a year ago.
Zoom reported that it had about 370,200 customers with more than 10 employees, which was up 458% from the same time last year.
Future guidance for the company for fiscal Q3 2021 included revenue between $685 million and $690 million and a full-year fiscal 2021.
Shares of Zoom were trading at $453.38 as of 10:34 a.m. EDT, up $128.28 or $39.46%.
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