Zoom stock rallies on Q4 earnings report

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on Feb 26, 2024
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  • Zoom reported its financial results for the fourth quarter today.
  • Here's what its CEO Eric Yuan said in a press release on Monday.
  • Zoom stock is now trading close to its high in late December.

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Zoom Video Communications Inc (NASDAQ: ZM) is trading up in extended hours on Monday after reporting upbeat results for its fiscal fourth quarter.

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Zoom stock pops on solid guidance

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The stock is being rewarded also because the management issued encouraging guidance for the future. Zoom now forecasts its revenue to come in at $1.125 billion.

That’s roughly in line with $1.13 billion that analysts had called for. Eric Yuan – the chief executive of Zoom Video Communications said in a press release today:

In FY24, we unveiled Zoom AI Companion. We’re committed to democratizing AI accessibility, offering it to all our customers regardless of business size, included at no extra charge with a paid license.

The communications technology company expects $1.18 to $1.20 of adjusted per-share earnings in Q1 – ahead of Street estimates. Zoom stock is now trading close to its high in late December.

Notable figures in Zoom Q4 earnings release

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  • Earned $298.8 million that translates to 95 cents a share
  • Had $104.1 million of net loss (36 cents a share) last year
  • Adjusted EPS printed at $1.42 as per the earnings report
  • Revenue climbed 2.6% year-over-year to $1.14 billion
  • Consensus was $1.15 a share on $1.13 billion in revenue
  • Authorised $1.5 billion worth of stock repurchase

$ZM saw a 9.8% annualised growth in the number of customers who contributed over $100,000 in revenue in the trailing twelve months. CEO Yuan also said on Monday:

We also drove robust profitability and grew free cash flow, up 24.1% year over year to $1,471.9 million for the full fiscal year, representing a free cash flow margin of 32.5%.

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