Zoom boasts upbeat results, strong forecasts
Total revenue for the fourth quarter was up 369% year-over-year
Stocks impacted: Zoom Video Communications Inc (ZM)
The fourth quarter of 2020 marked a strong finish to a very strong year for Zoom as the firm has become an engine for the work-from-home environment amid the pandemic. The videoconferencing service reported total quarterly revenue of $882.5 million, compared with estimates of $811.8 million, up 369% year-over-year. On an adjusted basis, the company earned $1.22 per share, beating estimates of 79 cents per share. GAAP operating margin was 29.0% and non-GAAP operating margin was 40.9%. Net cash provided by operating activities was $399.4 million for the quarter, compared to $36.6 million in the fourth quarter of the fiscal year 2020. Furthermore, Zoom forecasts current-quarter revenue above expectations, as the company expects millions of people to continue using its platform to work remotely. Against this backdrop, the firm’s shares rallied nearly 10% overnight.
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