Zoom Video Communications reports another stellar quarter, with revenue blooming by nearly 200%. During its first-quarter earnings call released after the bell on June 01, the company updated $956.20 million in revenue and $1.32 EPS.
Both results topped the average analyst consensus, which came at $906.0 million and $0.99, respectively.
Year over year revenue hit near $1 billion compared to the $328.20 million during the same period last year. This translates to a 191% increase, extending the 369% revenue jump incurred in the previous quarter.
The video-conferencing app managed to gain traction during the sudden inclination towards remote jobs and learning for the record.
It has become a ubiquitous tool to keep businesses running at the height of mobility restrictions.
Analysts expected reversals across all boards during the quarter. This is due to the swift vaccination progress in some of its main market niches, particularly the United States. Such improvement paved the way for face-to-face interactions, with some firms now fully situated back to brick-and-mortar operations.
According to CEO Eric Yuan, the entity’s commitment towards work empowerment and learn-from-anywhere scheme kept the business afloat during the toughest times.
Spectators project that the return to normal operations could undermine the Zoom app’s ability to make more downloads in the year’s remaining months.
However, the company proves to be a very important entity, especially now that businesses see the importance of hybrid operations.
On the other hand, one of the biggest threats to further growth is the growing competition in the market. Take, for example, Microsoft Teams has garnered impressive traction and sealed partnerships in the past months.
Here Is how Zoom Stock Reacted
Ironically, Zoom stock fell by 3% after the stellar announcement. Many factors contributed to the fall, but fears of increasing competition mostly drove it. The race to stay relevant in the new normal setting has also become another concern.
It extended fall on Tuesday’s session, where it closed at $327.11 a share and is looking to open another session with a 0.043% fall. The latter translates to a conservative $0.14 net change.
Zoom noted that in guidance for the second quarter, it expects a $1.14 to $1.15 quarterly EPS. Consequently, the annual EPS is adjusted to $4.56, at a worse scenario.
Q2 profit should come at $985 million to $990 million in terms of revenue.