Zoom Communications Inc (NASDAQ:ZM) reported financial results for the first quarter after the market close on Thursday. Here’s a rundown of the communications company’s report.
- Zoom shares are experiencing downward pressure. What’s pulling ZM shares down?
Zoom Q1 Earnings Highlights
Zoom reported revenue of $1.24 billion for the first quarter, beating the consensus estimate of $1.22 billion. The company posted first-quarter adjusted earnings of $1.55 per share, beating analyst estimates of $1.42 per share, according to Benzinga Pro.
Total revenue was up 5.5% on a year-over-year basis. Zoom said enterprise revenue increased 7.2% year-over-year to $755.7 million, and online revenue was up 2.8% year-over-year to $483.3 million.
Online monthly average churn was 3% in the quarter. The company ended the quarter with 4,534 customers contributing more than $100,000 in trailing 12 months revenue, up 8.2% year-over-year.
Net cash provided by operating activities was $521.6 million in the quarter and free cash flow came in at $500.5 million. Zoom ended the period with $7.7 billion in cash, cash equivalents and marketable securities.
“Customers are increasingly adopting Zoom as an AI-first system of action for modern work, with AI Companion paid users growing 184% year over year, and My Notes reaching 1.5 million licensed users within just four months of launch,” said Eric Yuan, founder and CEO of Zoom.
“We also saw strong progress across new AI monetization streams and Zoom Customer Experience, which continued to see accelerating high double-digit growth.”
What’s Next For Zoom?
Zoom expects second-quarter revenue to be in the range of $1.265 billion to $1.27 billion, versus estimates of $1.267 billion. The company anticipates second-quarter adjusted earnings of $1.45 to $1.47 per share versus estimates of $1.48 per share.
Zoom also raised its full-year guidance. The company now expects full-year revenue of $5.08 billion to $5.09 billion, versus estimates of $5.07 billion. Zoom now sees full-year adjusted earnings of $5.96 to $6 per share versus estimates of $5.87 per share.
Zoom executives will further discuss the quarter on an earnings call scheduled for 5 p.m. ET.
ZM Shares Pop After The Close
ZM Price Action: Zoom shares were up 5.92% in after-hours Thursday, trading at $102.48 at the time of publication, according to Benzinga Pro.
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