Zoom Video Communications raised its forecast for the full year after reporting much higher than expected second quarter results. The company's revenues leapt 355 percent from the year before to USD 663.5 million, the operating profit increased to USD 188.1 million from 2.3 million, and the adjusted operating profit rose to USD 277 million form 20.7 million.
The net profit jumped to USD 185.7 million or USD 0.63 per share, from 5.5 million and 0.02 per share, with the adjusted net profit leaping to USD 274.8 million or USD 0.82 per share, from 24 million and 0.08 per share. CEO Eric Yuan attributed the strong growth to new customers, with companies moving from their immediate business needs to supporting a future of working, learning and connecting anywhere on Zoom’s platform.
As a result, Yuan said the company now sees FY revenues advancing to USD 2.37-2.39 billion, an adjusted operating profit of 730-750 million and adjusted EPS at USD 2.40-2.47.
Zoom recorded 370,200 customers with more than 10 employees at the end of the quarter, up 458 percent from the year before and compared to 265,400 in the previous quarter. The number of customers generating more than USD 100,000 in revenue over the past 12 months reached 988, soaring 112 percent year-on-year and against the 769 reported in Q1.
Free cash flow lifted to USD 401.3 million from USD 31.2 million the year earlier, with cash and cash equivalents going to USD 1.5 billion.
Looking towards the next quarter, Zoom is guiding for fiscal third quarter revenues of USD 685-690 million, an adjusted operating profit of USD 225-230 million, and adjusted EPS of USD 0.73-0.74.
