The stock of Zoom Video Communications (ZM) is up 13% after the video conference company reported earnings that beat Wall Street’s expectations.
Zoom announced earnings per share (EPS) of $1.22 U.S. compared to $1.15 U.S. that was expected among analysts.
Revenue in Q4 2023 totaled $1.15 billion U.S. versus $1.13 billion U.S. that had been anticipated. Sales were up 3% from a year earlier.
At the end of last year, Zoom had 220,400 enterprise customers, up from 219,700 at the end of the previous third quarter.
In terms of guidance, Zoom said it expects $1.18 U.S. to $1.20 U.S. in EPS on $1.125 billion U.S. in revenue, which would represent year-over-year growth of about 2%.
Analysts had been looking for $1.13 in earnings and sales of $1.13 billion U.S. for Q1 of this year.
While Zoom soared during the Covid-19 pandemic, registering revenue growth of more than 100% for five straight quarters, the company has since struggled and is now seeing single-digit growth.
Before today (Feb. 27), Zoom’s stock had declined 14% over the last 12 months to trade at $63.12 U.S. per share.
