Zoom Video Communications, Inc. (NASDAQ: ZM) reported strong first-quarter results this Monday, and the company’s shares advanced more than 20% on a weekly basis.
The company’s management updated financial guidance for the second fiscal quarter and for the full 2023 fiscal year.
Zoom Video has room to grow
Zoom Video is an American communications technology company that provides video telephony and online chat services through a cloud-based peer-to-peer software platform. The company was incorporated in 2011 and completed an initial public offering in 2019.
Zoom Video reported strong first-quarter results this Monday; total revenue has increased by 11.9% Y/Y to $1.07 billion, while the non-GAAP earnings per share were $1.03 (beats by $0.16). Kelly Steckelberg, CFO of Zoom Video Communications, said:
The growth was primarily driven by strength in our Enterprise business, which saw a steady increase in customers as well as improved renewal rates year-over-year. We also saw ongoing success in Zoom Rooms and Zoom Phone, which reached 3 million seats during the quarter.
The company’s management updated financial guidance for the second fiscal quarter and for the full 2023 fiscal year. Total revenue for the second fiscal quarter should be between $1.115 billion and $1.120 billion vs. a consensus of $1.11 billion, while the non-GAAP income from operations should be between $360 million and $365 million.
Total revenue for the full fiscal year should be between $4.53 billion and $4.55 billion vs. a consensus of $4.54 billion, while the non-GAAP income from operations should be between $1.48 billion and $1.5 billion.
Zoom Video shares advanced more than 20% on a weekly basis, but they are still down approximately 40% on a YTD basis. According to J.P. Morgan, Zoom Video has
