Zoom’s Q1 Financials Top Analyst Predictions
Zoom has blasted past Wall Street predictions, with its first quarter 2021 total revenue reaching $956.2 million, up 191 per cent year on year.
Zoom also boasted close to half a million business customers with more than ten employees, which is up 87 per cent year on year.
“We kicked off the fiscal year with a very strong first quarter,” said Zoom founder and CEO, Eric S. Yuan.
“Work is no longer a place, it’s a space where Zoom serves to empower your teams to connect and bring their best ideas to life. We are energised to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections.”
Net profit sits at $1.32 a share.
Wall Street analysts had forecast revenue of $908 million, with a value of 99 cents per share.
“Our steadfast commitment to empowering customers to work and learn from anywhere with our expansive, innovative, and frictionless video communications platform continued to drive our results,” Yuan continued.
“With this solid start, we are pleased to raise our total guidance range to $3.975 billion to $3.990 billion for the full fiscal year.”
Zoom posted the following financial highlights:
Revenue: Total revenue for the first quarter was $956.2 million, up 191% year over year.
Income from Operations and Operating Margin: GAAP income from operations for the first quarter was $226.3 million, up from $23.4 million in the first quarter of fiscal year 2021. After adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, and litigation settlements, net, non-GAAP income from operations for the first quarter was $400.9 million, up from $54.6 million in the first quarter of fiscal year 2021. For the first quarter, GAAP operating margin was 23.7% and non-GAAP operating margin was 41.9%.
Net Income and Net Income Per Share: GAAP net income attributable to common stockholders for the first quarter was $227.4 million, or $0.74 per share, up from $27.0 million, or $0.09 per share in the first quarter of fiscal year 2021. Non-GAAP net income for the quarter was $402.1 million, after adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, litigation settlements, net, and undistributed earnings attributable to participating securities. Non-GAAP net income per share was $1.32. In the first quarter of fiscal year 2021, non-GAAP net income was $58.3 million, or $0.20 per share.
Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of April 30, 2021 was $4.7 billion.
Cash Flow: Net cash provided by operating activities was $533.3 million for the first quarter, compared to $259.0 million in the first quarter of fiscal year 2021. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $454.2 million, compared to $251.7 million in the first quarter of fiscal year 2021.