Zoom (ZM) Q2 2021 Results


Zoom Video Communications shares rose 9% in extended trading on Monday after the company reported second quarter tax results above analysts’ expectations and significantly raised its full-year guidance.Here’s how the company did it:

  • Gains: 92 cents per share, adjusted, compared to 45 cents per share as expected by analysts, according to Refinitiv.
  • Returned: $ 663.5 million, compared to $ 500.5 million as expected by analysts, according to Refinitiv.

Revenue increased 355% on an annualized basis in the fiscal second quarter, which ended July 31, and revenue approached $ 186 million, according to a statement. In the previous quarter, Zoom’s turnover increased by 169%.

People became more dependent on Zoom’s video calling software for business, educational and personal use in the quarter, after the coronavirus pandemic led officials to direct people to stay at home around the world, meaning people couldn’t meet in person like they used to. The company has hired information security and diversity officers, added Lt. Gen. Herbert Raymond “HR” McMaster to its board, announced plans for research and development centers in Phoenix and Pittsburgh, and said it had acquired secure messaging startup Keybase.

Zoom averaged 148.4 million monthly active users in the quarter, up 4,700% year-over-year, RBC analysts led by Alex Zukin wrote in a note distributed to clients on Aug. 17, citing data from app analytics startup SensorTower. Analysts have the equivalent of a buy rating on Zoom stock.

Excluding the after-hours movement, Zoom shares are up 369% year-to-date, while the S&P 500 index is up around 9%. During Monday’s trading session, Zoom stock was up almost 9%, while the Dow Jones Industrial Average and S&P 500 ended the day lower.

As for the forecast, Zoom expects third-quarter tax profit of 73 cents to 74 cents per share on an adjusted basis and revenue of $ 685 million to $ 690 million. Analysts polled by Refinitiv had expected adjusted earnings of 35 cents per share on $ 492.9 million in revenue.

Zoom raised its forecast for the full year 2021. It claimed $ 2.40 to $ 2.47 in adjusted earnings per share and $ 2.37 billion to $ 2.39 billion in revenue, or 282% annualized revenue growth in the middle of the range. The consensus among analysts polled by Refinitiv was $ 1.30 in adjusted earnings per share and $ 1.81 billion in revenue. Zoom’s forecast for the full year was $ 1.21 to $ 1.29 in adjusted earnings per share on revenue of $ 1.78 billion to $ 1.80 billion.

Executives will discuss the results with analysts on a conference call starting at 5:30 p.m. EST.

This is the latest news. Please come back for updates.

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