Zoom Stock Skyrockets Over 40% After Blowout Quarter, And It Expects To Keep Rising

 As millions of people continue to rely on video-conferencing amid the coronavirus pandemic, Zoom is benefiting—shares of the e-video company surged by over 40% on Tuesday morning, a day after it reported blowout second quarter earnings that easily topped analyst estimates.

The tech company posted revenue of $663.5 million last quarter, compared to the $500.5 million forecast by analysts, and profits of 92 cents per share (versus 45 cents per share expected).

 

Revenue more than quadrupled from last year, growing 355% on an annualized basis.

 

Zoom added nearly 105,000 new customers in the second quarter, with new customers’ subscriptions delivering 81% of revenue growth.

 

Zoom is one of the best performing stocks so far in 2020, largely weathering the pandemic-induced sell-off in March and rising by more than 370% year to date.

 

The company now expects revenue between $685 million and $690 million in the third quarter, and also raised its financial guidance for the full fiscal year to almost $2.4 billion as it takes into account growing “demand for remote work solutions for businesses.”

 

“Zoom crushed its second-quarter results and once again substantially raised full year revenue guidance,” says Morningstar analyst Dan Romanoff, adding, “While it was virtually impossible to top last quarter’s once-in-a-generation results, Zoom delivered a tremendous encore.”