Zoom continues to boom!
Earnings roar to nearly $1 billion in 2020 as stock zooms after hours
Zoom Video Communications Inc.’s rip-roaring ride resumed its meteoric trajectory Monday, with shares jumping as the company detailed the results of becoming a lifeline for those stuck at home due to the COVID-19 pandemic: Booming profit and revenue.
The video-communications company reported fourth-quarter net income of $260.4 million, or 87 cents a share, compared with net income of $15.3 million in the year-ago quarter. After adjusting for stock-based compensation and other factors, Zoom reported earnings of $1.22 a share, up from 15 cents a share a year ago.
ZOOM REMAINS CORONAVIRUS PANDEMIC FIXTURE
Revenue hurtled 369% higher to $882.5 million from $188.3 million a year ago. Analysts surveyed by FactSet had expected adjusted earnings of 79 cents a share on revenue of $812 million.
Overall for the fiscal year, Zoom reported adjusted profit of nearly $1 billion — $995.7 million — after barely clearing $100 million in adjusted earnings in the previous year, at $101.3 million. The company added more than $2 billion in revenue, growing to $2.65 billion from sales of $622.7 million the year before.
Zoom became a household name as the COVID-19 pandemic forced lockdowns across the globe, and shares exploded higher early in 2020, but seemed to hit a ceiling in the fall and have come back down steadily since. A steep rise in coronavirus cases during and after the holidays intensified business restrictions and forced many workplaces to reconsider reopening in 2021, however, leading to renewed use of Zoom’s services.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ZM | ZOOM VIDEO COMMUNICATIONS INC. | 85.00 | +1.58 | +1.90% |
“The fourth quarter marked a strong finish to an unprecedented year for Zoom,” Zoom Chief Executive Eric Yuan said in a statement announcing the results.
Zoom shares gained nearly 10% in after-hours trading Monday after the results were announced, after increasing 9.7% in the regular session to $409.66, the stock’s biggest one-day gain since November. The stock has gained 255% in the past year, but declined 10.5% in the past six months. The broader S&P 500 index has climbed 26% in the past year and 8.1% in the past six months.