Zoom Q2 Profit Soars, Lifts FY Outlook; Stock Surges

(RTTNews) - Zoom Video Communications Inc. (ZM) reported that its second-quarter net income attributable to common stockholders surged to $185.7 million or $0.63 per share from $5.5 million or $0.02 per share in the second quarter of fiscal year 2020.

ZM closed Monday regular trading at $325.10, up $25.83 or 8.63 percent. In the after-hours, the stock further gained $73.92 or 22.74 percent.

Non-GAAP net income was $0.92 compared to $0.08 in the previous year.

Total revenue for the quarter was $663.5 million, up 355% year-over-year.

At the end of the second quarter of fiscal year 2021, Zoom had about 370,200 customers with more than 10 employees, up about 458% from the same quarter last fiscal year.

For the third-quarter, the company projects non-GAAP earnings per share to be in the range of $0.73 - $0.74, and total revenue of $685.0 million - $690.0 million. Analysts polled by Thomson Reuters expect the company to report earnings of $0.35 per share and revenues of $492.9 million for the third-quarter. Analysts' estimates typically exclude special items.

Looking ahead for fiscal year 2021, the company now projects non-GAAP income from operations to be between $730.0 million and $750.0 million, non-GAAP earnings per share of $2.40 - $2.47 and total revenue of $2.37 billion - $2.39 billion. Wall Street currently is looking for fiscal year 2021 earnings of $1.30 per share on annual revenues of $1.81 billion.

The company said in June that it expected adjusted earnings of $1.21 to $1.29 per share and revenues of $1.775 billion - $1.800 billion for the full year 2021.