Published: Feb. 26, 2024 at 4:16 p.m. ET
Zoom Video Communications Inc.âs stock surged in extended trading Monday, after the videoconferencing company topped expectations across the board with its financial results and forecasts. The company also authorized a $1.5 billion buyback.
Zoom ZM reported fiscal fourth-quarter net income of $298.8 million, or 95 cents cents a share, on revenue of $1.15 billion, up from $1.12 billion a year ago. After adjusting for stock compensation and other effects, Zoom reported earnings of $1.42 a share.
Analysts…
Zoom Video Communications Inc.âs stock surged in extended trading Monday, after the videoconferencing company topped expectations across the board with its financial results and forecasts. The company also authorized a $1.5 billion buyback.
Zoom
ZM
reported fiscal fourth-quarter net income of $298.8 million, or 95 cents cents a share, on revenue of $1.15 billion, up from $1.12 billion a year ago. After adjusting for stock compensation and other effects, Zoom reported earnings of $1.42 a share.
Analysts surveyed by FactSet had on average expected adjusted net income of $1.15 a share on revenue of $1.13 billion.
Zoom forecast first-quarter adjusted earnings of $1.18 to $1.20 a share on revenue of about $1.125 billion, while analysts on average were projecting $1.13 a share on sales of $1.13 billion, according to FactSet.
âWeâre committed to democratizing AI accessibility, offering it to all our customers regardless of business size, included at no extra charge with a paid license,â Zoom Chief Executive Eric Yuan said in a statement announcing the results.
Shares of Zoom advanced more than 13% in after-hours trading Monday immediately following the release of its results. Zoomâs stock has tumbled 14% over the past 12 months, while the broader S&P 500 index
SPX
has increased 27%.
Despite escalating competition from the likes of Microsoft Corp.
MSFT
,
Cisco Systems Inc.
CSCO
,
and Alphabet Inc.âs
GOOGL
GOOG
Google, Zoom has been able to hold its own with a steady stream of products and services for consumers.
Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
