Key Takeaways

  • The number of Zoom customers contributing over $100,000 in 12-month trailing revenue topped analysts' estimates.
  • Large-contract customers contributing more than $100,000 in annual revenue are usually a more stable source of revenue than smaller-contract customers.
  • Zoom expects Q2 FY 2022 adjusted EPS of between $1.14 and $1.15 on between $985.0 million and $990.0 million of revenue.
Zoom Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted Earnings Per Share Beat $1.32 $0.97
Revenue Beat $956.2M $904.8M
Customers Contributing Over $100K in 12-month Trailing Revenue Beat  1,999 1,812

Source: Predictions based on analysts' consensus from Visible Alpha

Zoom (ZM) Financial Results: Analysis

Zoom Video Communications, Inc. (ZM) reported Q1 FY 2022 earnings that significantly beat analysts' expectations. Adjusted earnings per share (EPS) surpassed analyst forecasts, rising 560.0% year over year (YOY). Zoom's revenue came in above analyst estimates, climbing 191.4% YOY. The number of customers contributing 100,000 in 12-month trailing (TTM) revenue also exceeded analyst estimates. The company's shares fell as much as 3% in after-hours trading. Over the past year, Zoom's shares have provided a total return of 60.5%, well above the S&P 500's total return of 37.5%.

ZM Customers Contributing Over $100K in 12-month Trailing Revenue

The number of Zoom's customers contributing over $100,000 in TTM revenue rose 160.0% YOY. The size of this customer group provides a measure of two key capabilities: Zoom's ability to scale its offerings to its users' needs, and the company's ability to attract larger organizations to its platform. Large customers are likely to be a more stable source of revenue compared to individuals or smaller organizations, who may switch more frequently to other video conferencing services. Securing contracts with large enterprises will be especially important as the global economy emerges from the pandemic and as many people begin returning to their company offices to work.

ZM Forward Guidance

Zoom provided guidance for Q2 FY 2022 and for full-year FY 2022. The company expects total revenue in the second quarter to be between $985.0 million and $990.0 million. It expects adjusted EPS to be between $1.14 and $1.15. For full-year FY 2022, Zoom expects total revenue to be approximately $4.0 billion. Annual adjusted EPS for the year is expected to be between $4.56 and $4.61.

Zoom's next earnings report (for Q2 FY 2022) is estimated to be released on Aug. 30, 2021.