Zoom Foresees Robust Growth Even as Pandemic Pressures Ease
By Maria Armental
Zoom Video Communications Inc. said its growth would continue at
a rapid pace amid the vaccine rollout, after pandemic lockdowns
turned the company into a household name and an investor
Zoom said Monday that revenue this year would rise more than 41%
after more than quadrupling to $2.65 billion in the fiscal year
ended in January.
Although Zoom made its name, in part, by giving its services
away free to many users during the pandemic, its number of paying
users also skyrocketed as large businesses and others tried to
connect their workforce and with customers. Zoom ended the year
with about 467,100 customers with more than 10 employees, a nearly
sixfold increase from the year earlier.
Zoom revenue for the January quarter surged to $882.5 million
from $188.3 million a year earlier. The results beat Wall Street
targets and Zoom's financial projections, driven by the shift to
remote work and distance schooling amid the Covid-19 outbreak.
Shares rose nearly 10% in after-hours trading. The stock closed
Monday at $409.66, up 9.7% for the day and more than tripling over
the past 12 months,
Zoom's fourth-quarter profit surged to more than $260 million
from $15.3 million in the year-prior period. On a per-share basis,
profit rose to 87 cents, or $1.22 on an adjusted basis.
But operating costs for the quarter and the full year also rose
sharply as the company expanded capacity to meet growing demand,
including from free accounts like school districts, which weighed
The videoconferencing company, which started trading in the
public markets in 2019, has been one of the biggest corporate
beneficiaries from the shift to remote work and distance schooling,
pitting it against larger rivals like Microsoft Corp.
The company has also faced stricter regulatory and legal
scrutiny over access and storage of user data, for example,
including its use of servers outside of the U.S.
Zoom ended the year with a profit of $671.5 million on $2.65
billion in revenue, compared with $21.8 million in profit and
$622.7 million in revenue a year earlier.
In the current fiscal year, it expects $3.59 to $3.65 a share in
adjusted profit and $3.76 billion to $3.78 billion in revenue,
ahead of analysts' projections, according to FactSet.
"In FY2021, we significantly scaled our business to provide
critical communications and collaboration services to our customers
and the global community in response to the pandemic," Chief
Executive Eric Yuan said in a statement. "As we enter FY2022, we
believe we are well positioned for strong growth with our
innovative video communications platform, on which our customers
can build, run, and grow their businesses."
Write to Maria Armental at email@example.com
(END) Dow Jones Newswires
March 01, 2021 17:39 ET (22:39 GMT)
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