Zoom Video Communications Inc reported fiscal first-quarter net income of $227.4 million, compared with $27 million in the year-ago period. Zoom's shares soared on Tuesday following an upgrade of the company's outlook in the months ahead.
The company topped Wall Street estimates for the quarter even as more and more people are using the platform to deal with COVID-19 restrictions. Zoom shares, which had initially slipped as much as 3 percent following the announcement of the results, retraced the steps and rose 3 percent.
Revenues Hits $956.2 Million
Zoom's adjusted earnings were $1.32 a share, compared with 20 cents a share in the year-ago period. The revenues increased to $956.2 million compared with $328.2 million in the year-ago quarter.
In the fiscal second quarter last year, Zoom Video Communications had posted total revenue of $663.5 million, a growth of 355 percent year-over-year as new customers joined the platform amid COVID-19 restrictions.
"We kicked off the fiscal year with a very strong first quarter, posting 191% total year-over-year revenue growth combined with strong profitability and cash flow ... With this solid start, we are pleased to raise our total guidance range," Eric Yuan, Zoom founder and chief executive, said in a statement.
San Jose, California-based Zoom's share prices have increased a whopping 60 percent in the past year.
However, analysts are doubtful about the red hot race of Zoom continuing in the long term as the world is slowly defeating the coronavirus pandemic with increased rates of vaccination.
"The extent to which Zoom can compete sustainably with the likes of Cisco and Microsoft remains to be seen over the next few quarters as we begin to enter true COVID comparable quarters," Joe McCormack, senior analyst at Third Bridge, told Reuters.