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Zoom's (ZM) Q1 Earnings Top Estimates, Revenues Jump Y/Y
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Zoom’s (ZM - Free Report) first-quarter fiscal 2022 adjusted earnings of $1.32 per share beat the Zacks Consensus Estimate by 36.08%. The company had reported earnings of 20 cents per share in the year-ago quarter.
Moreover, revenues of $957 million surpassed the consensus mark by 5.6% and also soared 191.8% year over year. This outperformance was primarily driven by new customer subscriptions.
Revenues from Americas (66.5% of revenues) jumped 158.5% year over year to $636 million. Revenues from EMEA (20.6% of revenues) soared a whopping 286.3% from the year-ago quarter to $197 million. Revenues from APAC (13% of revenues) were $124 million, up a massive 300% year over year.
Zoom Video Communications, Inc. Price, Consensus and EPS Surprise
Zoom continued to benefit from the coronavirus-induced work-from-home and online-learning wave, similar to its competitors Cisco and Microsoft (MSFT - Free Report) .
At the end of the fiscal first quarter, Zoom had roughly 497,100 customers (with more than 10 employees), up 87% year over year. Markedly, Zoom’s trailing 12-month net dollar-expansion rate in customers with more than 10 employees was above 130% for the 12th consecutive quarter.
KimberlyClark Corporation (KMB - Free Report) , Denso and Target (TGT - Free Report) were notable customer additions in the reported quarter.
Operating Details
Non-GAAP gross margin in the quarter under review expanded 440 basis points (bps) on a year-over-year basis to 73.8%.
Non-GAAP research & development (R&D) expenses as a percentage of revenues decreased 210 basis points (bps) on a year-over-year basis to 4.3%. Further, non-GAAP general & administrative (G&A) expenses decreased 720 bps to 7.7%.
Moreover, non-GAAP sales & marketing (S&M) expenses as a percentage of revenues were 19.9%, significantly down from 31.6% reported in the year-ago quarter.
Non-GAAP operating income surged to $400.9 million from $54.6 million reported in the year-ago quarter. Operating margin expanded to 41.9% from 16.7% reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Apr 30, 2021, cash and cash equivalents and marketable securities were $4.7 billion compared with $4.24 billion as of Jan 31, 2021.
Non-GAAP free cash flow was $454.2 million in the quarter under review compared with $377.9 million in the previous quarter and $251.7 million in the year-ago quarter.
Remaining performance obligation was $2.07 billion, up 94% year over year.
Guidance
For second-quarter fiscal 2022, Zoom expects revenues between $985 million and $990 million. Non-GAAP income from operations is expected between $355 million and $360 million. Moreover, non-GAAP earnings are expected in the $1.14-$1.15 per-share range.
For fiscal 2022, Zoom now expects revenues between $3.975 billion and $3.990 billion.
Non-GAAP income from operations is expected between $1.425 billion and $1.440 billion. Moreover, non-GAAP earnings are expected in the $4.56-$4.61 per share range.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Zoom's (ZM) Q1 Earnings Top Estimates, Revenues Jump Y/Y
Zoom’s (ZM - Free Report) first-quarter fiscal 2022 adjusted earnings of $1.32 per share beat the Zacks Consensus Estimate by 36.08%. The company had reported earnings of 20 cents per share in the year-ago quarter.
Moreover, revenues of $957 million surpassed the consensus mark by 5.6% and also soared 191.8% year over year. This outperformance was primarily driven by new customer subscriptions.
Revenues from Americas (66.5% of revenues) jumped 158.5% year over year to $636 million. Revenues from EMEA (20.6% of revenues) soared a whopping 286.3% from the year-ago quarter to $197 million. Revenues from APAC (13% of revenues) were $124 million, up a massive 300% year over year.
Zoom Video Communications, Inc. Price, Consensus and EPS Surprise
Zoom Video Communications, Inc. price-consensus-eps-surprise-chart | Zoom Video Communications, Inc. Quote
User Base Jumps in Q1
Zoom continued to benefit from the coronavirus-induced work-from-home and online-learning wave, similar to its competitors Cisco and Microsoft (MSFT - Free Report) .
At the end of the fiscal first quarter, Zoom had roughly 497,100 customers (with more than 10 employees), up 87% year over year. Markedly, Zoom’s trailing 12-month net dollar-expansion rate in customers with more than 10 employees was above 130% for the 12th consecutive quarter.
Moreover, this Zacks Rank #3 (Hold) company had 1,999 customers with more than $100,000 in trailing 12-month revenues, up roughly 160% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KimberlyClark Corporation (KMB - Free Report) , Denso and Target (TGT - Free Report) were notable customer additions in the reported quarter.
Operating Details
Non-GAAP gross margin in the quarter under review expanded 440 basis points (bps) on a year-over-year basis to 73.8%.
Non-GAAP research & development (R&D) expenses as a percentage of revenues decreased 210 basis points (bps) on a year-over-year basis to 4.3%. Further, non-GAAP general & administrative (G&A) expenses decreased 720 bps to 7.7%.
Moreover, non-GAAP sales & marketing (S&M) expenses as a percentage of revenues were 19.9%, significantly down from 31.6% reported in the year-ago quarter.
Non-GAAP operating income surged to $400.9 million from $54.6 million reported in the year-ago quarter. Operating margin expanded to 41.9% from 16.7% reported in the year-ago quarter.
Balance Sheet & Cash Flow
As of Apr 30, 2021, cash and cash equivalents and marketable securities were $4.7 billion compared with $4.24 billion as of Jan 31, 2021.
Non-GAAP free cash flow was $454.2 million in the quarter under review compared with $377.9 million in the previous quarter and $251.7 million in the year-ago quarter.
Remaining performance obligation was $2.07 billion, up 94% year over year.
Guidance
For second-quarter fiscal 2022, Zoom expects revenues between $985 million and $990 million. Non-GAAP income from operations is expected between $355 million and $360 million. Moreover, non-GAAP earnings are expected in the $1.14-$1.15 per-share range.
For fiscal 2022, Zoom now expects revenues between $3.975 billion and $3.990 billion.
Non-GAAP income from operations is expected between $1.425 billion and $1.440 billion. Moreover, non-GAAP earnings are expected in the $4.56-$4.61 per share range.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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