Shares of Zoom Video Communications (ZM) exploded from $317 to a high of $462.80 on earnings.
Revenue soared 355% to $663.5 million, topping analyst expectations for $500.5 million. Adjusted EPS came in at 92 cents, which was more than double expectations for 45 cents. Zoom also raised its guidance for the full 2021 fiscal year. Revenue is now expected to fall in a range of $2.37 billion and $2.39 billion, which, according to CNBC, implies 282% growth in the middle of the range. That’s also above estimates for sales of $1.81 billion.
“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform. At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases,” said Zoom founder and CEO, Eric S. Yuan. “Our ability to keep people around the world connected, coupled with our strong execution, led to revenue growth of 355% year-over-year in Q2 and enabled us to increase our revenue outlook to approximately $2.37 billion to $2.39 billion for FY21, or 281% to 284% increase year-over-year.”