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Zoom's (ZM) Q4 Earnings Top Estimates, Revenues Jump Y/Y
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Zoom’s (ZM - Free Report) fourth-quarter fiscal 2021 adjusted earnings of $1.22 per share beat the Zacks Consensus Estimate by 56.4%. The company had reported earnings of 15 cents per share in the year-ago quarter.
Moreover, revenues of $882 million surpassed the consensus mark by 9.1% and also soared 369.1% year over year. This outperformance was primarily driven by new customer subscriptions, which accounted for approximately 80% of growth.
Revenues from Americas (67.2% of revenues) jumped 292.7% year over year to $593 million. Revenues from EMEA (19.4% of revenues) soared a whopping 677.3% from the year-ago quarter to $135.2 million. Revenues from APAC (13.4% of revenues) were $118 million, up a massive 686.7% year over year.
User Base Jumps in Q3
Zoom continued to benefit from the coronavirus-induced work-from-home and online-learning wave, similar to its competitors Cisco (CSCO - Free Report) and Microsoft (MSFT - Free Report) .
At the end of fiscal fourth quarter, Zoom had roughly 467,100 customers (with more than 10 employees), up 470% year over year. Markedly, Zoom’s trailing 12-month net dollar-expansion rate in customers with more than 10 employees was above 156% for the 11th consecutive quarter.
Moreover, this Zacks Rank #1 (Strong Buy) company had 1,644 customers with more than $100,000 in trailing 12-month revenues, up roughly 156% year over year. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Zoom Video Communications, Inc. Price, Consensus and EPS Surprise
Equinix (EQIX - Free Report) , Universal Music Group and University of Southern California were notable customer additions in the reported quarter.
Operating Details
Non-GAAP gross margin in the quarter under review was 71.3%, significantly down from 84.2% reported in the year-ago quarter.
Research & development (R&D) expenses as a percentage of revenues decreased 510 basis points (bps) on a year-over-year basis to 5.9%. Further, general & administrative (G&A) expenses decreased 180 bps to 8.8%.
Moreover, sales & marketing (S&M) expenses as a percentage of revenues were 18.1%, significantly down from 44.7% reported in the year-ago quarter.
Non-GAAP operating income surged to $360.9 million from $38.4 million reported in the year-ago quarter. Operating margin expanded to 40.9% from 20.4% reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jan 31, 2021, cash and cash equivalents and marketable securities were $4.24 billion compared with $1.87 billion as of Oct 31, 2020.
Free cash flow was $377.9 million in the quarter under review compared with $388.2 million in the previous quarter and $26.6 million in the year-ago quarter.
Remaining Performance Obligation was $1.75 billion, up 190% year over year.
Guidance
For first-quarter fiscal 2022, Zoom expects revenues between $900 million and $905 million. Non-GAAP income from operations is expected between $295 million and $300 million. Moreover, non-GAAP earnings are expected in the 95-97 cents-per-share range.
Moreover, the consensus mark for fourth-quarter revenues stands at $718.9 million, indicating year-over-year growth of 281.9%.
For the full fiscal, Zoom now expects revenues between $3.760 billion and $3.780 billion.
Non-GAAP income from operations is expected between $1.125 billion and $1.145 billion. Moreover, non-GAAP earnings are expected in the $3.59-$3.65 per-share range.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Zoom's (ZM) Q4 Earnings Top Estimates, Revenues Jump Y/Y
Zoom’s (ZM - Free Report) fourth-quarter fiscal 2021 adjusted earnings of $1.22 per share beat the Zacks Consensus Estimate by 56.4%. The company had reported earnings of 15 cents per share in the year-ago quarter.
Moreover, revenues of $882 million surpassed the consensus mark by 9.1% and also soared 369.1% year over year. This outperformance was primarily driven by new customer subscriptions, which accounted for approximately 80% of growth.
Revenues from Americas (67.2% of revenues) jumped 292.7% year over year to $593 million. Revenues from EMEA (19.4% of revenues) soared a whopping 677.3% from the year-ago quarter to $135.2 million. Revenues from APAC (13.4% of revenues) were $118 million, up a massive 686.7% year over year.
User Base Jumps in Q3
Zoom continued to benefit from the coronavirus-induced work-from-home and online-learning wave, similar to its competitors Cisco (CSCO - Free Report) and Microsoft (MSFT - Free Report) .
At the end of fiscal fourth quarter, Zoom had roughly 467,100 customers (with more than 10 employees), up 470% year over year. Markedly, Zoom’s trailing 12-month net dollar-expansion rate in customers with more than 10 employees was above 156% for the 11th consecutive quarter.
Moreover, this Zacks Rank #1 (Strong Buy) company had 1,644 customers with more than $100,000 in trailing 12-month revenues, up roughly 156% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zoom Video Communications, Inc. Price, Consensus and EPS Surprise
Zoom Video Communications, Inc. price-consensus-eps-surprise-chart | Zoom Video Communications, Inc. Quote
Equinix (EQIX - Free Report) , Universal Music Group and University of Southern California were notable customer additions in the reported quarter.
Operating Details
Non-GAAP gross margin in the quarter under review was 71.3%, significantly down from 84.2% reported in the year-ago quarter.
Research & development (R&D) expenses as a percentage of revenues decreased 510 basis points (bps) on a year-over-year basis to 5.9%. Further, general & administrative (G&A) expenses decreased 180 bps to 8.8%.
Moreover, sales & marketing (S&M) expenses as a percentage of revenues were 18.1%, significantly down from 44.7% reported in the year-ago quarter.
Non-GAAP operating income surged to $360.9 million from $38.4 million reported in the year-ago quarter. Operating margin expanded to 40.9% from 20.4% reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Jan 31, 2021, cash and cash equivalents and marketable securities were $4.24 billion compared with $1.87 billion as of Oct 31, 2020.
Free cash flow was $377.9 million in the quarter under review compared with $388.2 million in the previous quarter and $26.6 million in the year-ago quarter.
Remaining Performance Obligation was $1.75 billion, up 190% year over year.
Guidance
For first-quarter fiscal 2022, Zoom expects revenues between $900 million and $905 million. Non-GAAP income from operations is expected between $295 million and $300 million. Moreover, non-GAAP earnings are expected in the 95-97 cents-per-share range.
Moreover, the consensus mark for fourth-quarter revenues stands at $718.9 million, indicating year-over-year growth of 281.9%.
For the full fiscal, Zoom now expects revenues between $3.760 billion and $3.780 billion.
Non-GAAP income from operations is expected between $1.125 billion and $1.145 billion. Moreover, non-GAAP earnings are expected in the $3.59-$3.65 per-share range.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>