Zoom beats guidance again as revenues grow nearly five-fold in Q3

News Broadband Global 1 DEC 2020 Updated: 2 DEC 2020
Zoom beats guidance again as revenues grow nearly five-fold in Q3
Zoom Video Communications reported revenues of USD 777.1 million for its fiscal third quarter to October, growing nearly five-fold from USD 166.6 million in the year-earlier period thanks to demand from home workers for its videoconferencing platform. After the better-than-expected sales, the company raised its full-year revenue forecast to USD 2.575-2.580 billion from an estimate in late August of USD 2.37-2.39 billion.

Adjusted operating profit was also much better than the company's guidance, at USD 290.8 million compared to USD 21.3 million a year ago. Net profit improved to USD 198.4 million or USD 0.66 per share from USD 2.2 million or USD 0.01 per share in the year-earlier period. Adjusted EPS of USD 0.99 was well ahead of Zoom's forecast of USD 0.73-0.74.

Free cash flow jumped to USD 388.2 million from USD 54.7 million a year ago, leaving Zoom with total cash of USD 1.9 billion at the end of October.

Zoom said it acquired new customers and expanded with existing customers. The number of customers with more than 10 employees rose to 433,700, up from 370,200 in the previous quarter and 485 percent higher year-on-year. A total of 1,289 customers contributed more than USD 100,000 in trailing 12-months revenue, compared to 988 in the previous quarter and less than half that in the same quarter last fiscal year.

The new outlook is based on expected continued demand for remote working solutions as well as elevated churn due to more customers on monthly contracts. For fiscal Q4, Zoom forecast revenue of USD 806-811 million, adjusted operating profit of USD 243-248 million and adjusted EPS of 77-79 cents. 

Annual adjusted operating profit is estimated at USD 865-870 million, up from its previous outlook of USD 730-750 million and adjusted EPS at USD 2.89-2.91, up from earlier guidance of USD 2.40-2.47. 

Updates
2 DEC 2020 - Zoom corrected FY adjusted EPS forecast.

Categories:

Internet

Companies:

Zoom Video Communications

Regions:

Global

Tags:

Enterprise equipment, Financial figures, Videoconferencing

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