Zoom Video Communications Inc.’s 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.
“We’re committed to democratizing AI accessibility, offering it to all our customers regardless of business size, included at no extra charge with a paid license,” Zoom Chief Executive Eric Yuan said in a statement announcing the results.
Shares of Zoom advanced more than 10% in after-hours trading Monday immediately following the release of its results. Zoom’s 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.’s
GOOGL,
GOOG,
Google, Zoom has been able to hold its own with a steady stream of products and services for consumers.
