Zoom Makes a Surprise Comeback, Stock Soars 13%

Forget those pandemic blues – Zoom surprised the market on Monday with a strong fourth-quarter earnings report, sending the stock surging 13% in after-hours trading.

The Numbers That Matter

• Earnings Surprise: Zoom beat analyst expectations with $1.22 adjusted earnings per share (vs $1.15 expected).
• Revenue Growth: While still below pandemic highs, revenue topped estimates at $1.15 billion (vs $1.13 billion expected).

Beyond the Pandemic Slump

Zoom’s days of triple-digit growth may be over, but the company’s far from out of the game. Its net income soared, and a sales reorganization hiccup has now been digested. And while revenue growth remains modest, Zoom boasts an impressive 220,400 enterprise customers.

CEO on the Offensive

CEO Eric Yuan isn’t resting on past success. He acknowledged the need to better market Zoom’s upgraded capabilities, highlighting a 4x increase in downloads of its Team Chat migration tool within six months.

What’s Next?

Zoom’s guidance signals continued, if tempered, growth. For Q1 2024, they project up to 2% revenue growth year-over-year, while the full fiscal year 2025 forecast hints at a slight revenue acceleration.

The Takeaway

Despite starting 2024 down 12%, Zoom’s latest results sent a shockwave through the market. The company is proving it can still compete post-pandemic and investors are taking notice.