According to Reuters, Zoom Video Communications Inc raised its annual revenue forecast by more than 30% after comfortably beating quarterly estimates on Monday as it converts more of its huge free user base to paid subscriptions.
Shares of the company rose 9.3 percent to $355.30 after the bell. It had hit an earlier high of $325.10 in regular trading. Its rivals, such as Microsoft Corp’s Team and Cisco System Inc’s Webex have also seen soaring usage.
it seems the company has stated that revenue rose 355% to $663.5 million, topping analysts’ average estimate of $500.5 million. While the company’s gross profit rose to 71% from 68%, it still is far below the 80% range that the company operated before free users rushed to the service.
Apparently, according to Reuters, on a conference call with investors, Zoom Chief Financial Officer Kelly Steckelberg said the company’s gross profits will remain in the same range as the fiscal second quarter for the rest of the fiscal year.
She also said the company was experiencing slightly higher rates of customer cancellation than Zoom’s historical average, but that the new rates had been factored into the company’s forecast.
The article by Reuters states that Zoom’s number of large customers – those generating more than $100,000 in revenue in the past year – more than doubled to 988 in the fiscal second quarter.
Second Quarter Fiscal Year 2021 Financial Highlights:
Full Fiscal Year 2021: Total revenue is expected to be between $2.37 billion and $2.39 billion. This revenue outlook takes into consideration the demand for remote work solutions for businesses.
It also assumed increased churn in the second half of the fiscal year when compared to historic churn levels due to a higher percentage of customers who purchased monthly subscriptions in the first quarter.
Non-GAAP income from operations is expected to be between $730.0 million and $750.0 million. Non-GAAP diluted EPS is expected to be between $2.40 and $2.47 with approximately 300 million non-GAAP weighted average shares outstanding.
Follow Asia Blockchain Review on:
Asia Blockchain Review aims to connect all blockchain enthusiasts on a regional scale, facilitating the technological underpinnings of blockchain through a range of group discussions, technical workshops, conferences and consulting programs.
We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us