Zoom Video Q4 results high estimates; analysts tell merchants had been too bearish going into earnings

Zoom Video Q4 results high estimates; analysts tell merchants had been too bearish going into earnings

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By Yasin Ebrahim and Senad Karaahmetovic

Investing.com -- Zoom Video Communications (NASDAQ:ZM) reported fourth-quarter results Monday that beat Wall Avenue estimates on each the high and bottom lines as novel enterprise buyer wins bolstered performance.

Zoom Video Communications stock is trading over 6% better in pre-open trading Tuesday.

The firm reported EPS of $1.22 on revenue of $1.12 billion, beating estimates for EPS of $0.81 on revenue of $1.1B.

Enterprise potentialities had been up 12% to about 213,000 yr-over-yr.

Potentialities contributing bigger than $100,000 in trailing 12-month revenue had been up 27% to 3,471 from the identical quarter final fiscal yr.

Having a stare forward, the firm guided fiscal first-quarter adjusted EPS between $0.96 and $0.98, above consensus of $0.85. Earnings turned into expected to be in rather about a $1.080B to $1.085B, beneath consensus of $1.11B.

For the corpulent-yr 2024, the firm guided adjusted EPS between $4.11 and $4.18 on revenue in rather about a $4.435B and $4.455B.

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Goldman Sachs analysts said the outcomes had been "stable." While they reiterated a Fair score on Zoom stock, they decreased the worth target from $92 to $85 per half.

"While we peep the handbook as increasingly more de-risked, we would desire to seem revenue re-acceleration by technique of Online stabilization and an bettering Enterprise mix (by technique of Phone/Contact Middle) sooner than turning into more constructive," analysts said in a consumer screen.

Morgan Stanley analysts added that Zoom delivered better-than-feared results.

"As previewed, merchants had leaned too bearish into the print, so at the same time as firm reduced high line outlook, it turned into less than merchants expected," the analysts wrote.

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