Zoom Video Communications (ZM) recently announced bumper earnings of $1.15bn for Q4, beating the estimate of $1.13bn. This led to its adjusted earnings per share reaching $1.42 rather than the predicted $1.15.
Zoom beats earnings prediction and announces share buyback scheme
With predicted revenue for Q1 listed at $1.13bn, these positive results led to a surge in the ZM share price on the Nasdaq, taking the market cap to $20.76bn in the process. As part of the results announcement, ZM also confirmed that it will be buying back up to $1.5bn of its shares.
While the company’s full-year revenue for 2023 showed just a modest increase of 3.1% to reach $4,527.2m in FY 2024, its operating cash flow marked a huge jump of almost 24% to $1,598.8m. Looking ahead, the company expects to generate revenue of $4.6bn in the next financial year, with a predicted 1.6% growth rate.
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These results were achieved thanks to a total of 3,810 paying customers who pay more than $100,000 each year for its services, reflecting Zoom’s strong enterprise customer base. Its newly announced stock repurchase scheme is aimed at buying back the Class S common shares held in Zoom.
Eric S. Yuan, the founder and CEO of Zoom, said that the company had “unveiled Zoom AI Companion, our generative AI digital assistant” during the last financial year, with the aim of helping teams boost productivity and effectiveness. He also pointed out that Zoom offers AI access to companies of all sizes at no extra cost.
