Zoom Video Q4 results top estimates; analyst says investors were too bearish going into earnings
Investing.com -- Zoom Video Communications reported Monday fourth-quarter results that beat Wall Street estimates on both the top and bottom lines as new enterprise customer wins bolstered performance.
Zoom Video Communications Inc (NASDAQ: ZM) stock is trading over 6% higher in pre-open trading Tuesday.
The company reported EPS of $1.22 on revenue of $1.12 billion, beating estimates for EPS $0.81 on revenue of $1.1B.
Enterprise customers were up 12% to about 213,000 year over year.
Customers contributing more than $100,000 in trailing 12-month revenue were up 27% to 3,471 from the same quarter last fiscal year.
Looking ahead, the company guided fiscal first-quarter adjusted EPS between $0.96 and $0.98, above consensus of $0.85. Revenue was expected to be in a range of $1.080B to $1.085B, below consensus of $1.11B.
For the full-year 2024, the company guided adjusted EPS between $4.11 and $4.18 on revenue in a range of $4.435B and $4.455B.
Goldman Sachs analyst Kash Rangan said the results were "solid." While the analyst reiterated a Neutral rating on Zoom stock, he lowered the price target from $92 to $85 per share.
"While we view the guide as increasingly de-risked, we would prefer to see revenue re-acceleration via Online stabilization and an improving Enterprise mix (via Phone/Contact Center) before becoming more constructive," Rangan said in a client note.
Morgan Stanley analyst Meta M Marshall added that Zoom delivered better-than-feared results.
"As previewed, investors had leaned too bearish into the print, so even as company reduced top line outlook, it was less than investors expected," the analyst wrote.
By Yasin Ebrahim and Senad Karaahmetovic