Zoom has been the video conferencing giant since the pandemic and is still doing quite well, against some predictions. As of this past week, the company beat out stock expectations with increased share prices that went up “as high as 18% in after-hours trading” after getting beaten down earlier this year. Bloomberg compiled some expectations and performances from Zoom’s Q1 2022 earnings below:
- Revenue was anticipated to be $1.07 billion and hit $1.07 billion;
- Adjusted EPS was expected to be $0.87 and hit $1.03;
- Customer retention rates were expected to be around 2,958 (for each customer that pays $100k in the last 12 months) and hit 2,916.
In addition, Zoom’s shares shot up from $3.70 to $3.77, up from $3.50 last year. Zoom reported an increase of 24% in enterprise customers year-over-year. After these reports came out, Zoom’s stock shot up over 18%.
Zoom CFO Kelly Steckelberg stated, “Given the improvements we are seeing so far this year, we expect gross margins to be in the range of 76% to 78% for the remainder of the year, which is higher than our previous view of the mid-70s.” Based on her statement, analysts assume that Zoom’s share prices will continue to “modestly accelerate.”
Looking at the broad view of the entire year, Zoom anticipates revenue to come in between $4.53 and $4.55 billion. Before this share spike, Zoom had seen its stock drop 72%. Zoom has also been expanding its services beyond video conferencing. The company is looking to add voice, SMS, and chat all into one platform to become a one-stop shop for businesses and remote workers.
However, not everybody believes the growth will last. Research analyst James Fish commented to Yahoo Finance, “There isn’t a whole lot of excitement at this point. … The fact is, if you’re not on Zoom by now, you won’t be adding it too much in the future.”
Despite his statement, Fish predicts Zoom to continue growing into the remaining quarters of 2022. While growth is still anticipated by Fish and other analysts, it is not expected to hit the triple-digit mark it once reached in the pandemic.
