Zoom reports an over 300% growth in sales in the fiscal second quarter

Zoom Video Communications Inc. (NASDAQ: ZM) published its quarterly financial results on Monday after the bell that blew past the analysts’ estimates. The company attributed its hawkish performance to the Coronavirus pandemic that pushed businesses into work from home arrangements and fuelled demand for its videotelephony and online chat services in recent months.

Zoom was reported just under 20% up in after-hours trading on Monday. Including the price action, shares of the company are now exchanging hands at £287.88 per share that represents an over 350% increase in 2020 so far.

Zoom makes more money in Q2 than it did in full fiscal 2019

Zoom said on Monday that its sales came in over 32% higher than expected in the fiscal second quarter. Its profit, on the other hand, printed at almost twice as much as the experts had forecast. The communications technology firm reported £138.86 million of net income in the recent quarter that translates to 47.11 pence a share.

At £496 million, the San Jose-based company’s sales came in over 300% higher versus the year-ago figure of £109 million. Zoom registered an annual net income of £75.67 million last year on £465.32 million of full-year revenue.

On an adjusted basis, the American company earned 68.79 pence per share in the recent quarter versus 5.98 pence of adjusted earnings per share in the comparable quarter of 2019. Zoom’s video chat services faced a temporary outage last week.

According to FactSet, experts had anticipated the company to note 33.65 pence of adjusted earnings per share in the second quarter on £374.10 million of sales.

Zoom’s guidance for the fiscal third quarter

For the fiscal third quarter, Zoom now expects up to 55.33 pence of adjusted earnings per share. It forecasts its revenue in Q3 to lie in the range of £512.21 million to £515.95 million. For the full year, its executives upgraded guidance for sales by about £448.65 million and for profit by almost 100%.

Analysts, on the other hand, have estimated 26.17 pence of adjusted EPS for Zoom in the third quarter on £367.74 million of sales. In the fiscal first quarter, Zoom had registered a 169% annualised growth in revenue.

At the time of writing, Zoom is valued at £68.59 billion and has a price to earnings ratio of 1,797.42.