Zoom Q4 earnings: 'they'll need an act two'

Shares of Zoom Video Communications Inc (NASDAQ: ZM) are trading up in extended hours after the videoconferencing company reported market-beating results for its fiscal fourth quarter.

Zoom stock up on encouraging guidance

The tech stock is gaining also because the company’s guidance came in better than expected. Zoom is now calling for $4.11 to $4.18 of adjusted per-share earnings this year on up to $4.48 billion in revenue.

In comparison, experts had forecast $3.66 per share and $4.38 billion, respectively. Reacting to the earnings print on CNBC’s “Closing Bell: Overtime”, JMP Securities’ Patrick Walravens said:

He currently has a “hold” rating on Zoom stock.

Notable figures in Zoom’s earnings report

• Lost $104.1 million that translates to 36 cents a share
• That compared to $490.5 million of net income last year
• Adjusted EPS printed at $1.22 as per the press release
• Revenue jumped about 5.0% YoY to $1.12 billion
• Consensus was 81 cents a share on $1.10 billion revenue

Should Zoom opt for an acquisition?

Zoom ended the quarter with over $5.0 billion of cash and marketable securities, which, as per Walravens, could see it opt for an acquisition.  

Zoom stock is now up about 20% for the year. Earlier this month, the California-based company announced plans of lowering its headcount by 15%.