Zoom crushes Q2 analyst expectations amid pandemic
Zoom's stock price is up nearly 10% in after-hours trading after the vide0-chat company posted Q2 results well above analyst expectations and raised its full-year guidance.
Why it matters: Zoom is unquestionably one of the biggest winners of the ongoing pandemic as restrictions on in-person interactions have forced many around the world to shift nearly all personal and professional activities online.
By the numbers:
- Earnings: $0.92 per share, adjusted, compared to $0.45 expected, per Refinitiv.
- Revenue: $663.5 million, compared to $500.5 million expected, per Refinitiv (and up 355% year-over-year).
- Zoom now has about 370,200 customers with more than 10 employees, up 458% year-over-year, and 988 customers paying more than $100,000 in trailing 12 months revenue, up 112% year-over-year.
Of note: Asked about the company's plans with regards to China, Zoom CFO Kelly Steckelberg told analysts Zoom has no plans to move its engineering teams currently based in the country, though it is working on diversify where its engineering employees are based.
- She added that moving Zoom's staff out of China would not affect its ability to provide services, but could affect its margins in the long run if it has to make staffing changes.
- CEO Eric Yuan added that users of Zoom in China make up a small portion of the company's business.
Editor's note: The story has been updated with comments from the company's analyst call.