Zoom Video Communications Inc.’s stock climbed in extended trading Monday, after the videoconferencing company topped expectations across the board with its financial results and forecasts.
Zoom ZM, +1.48% rang up fiscal second-quarter net income of $182 million, or 59 cents a share, on revenue of $1.14 billion, up from $1.1 billion a year ago. After adjusting for stock compensation and other effects, Zoom reported earnings of $1.34 a share, up from $1.05 a share last year and topping analysts’ expectations.
Analysts surveyed by FactSet had on average expected adjusted net income of $1.06 a share on revenue of $1.11 billion.
Zoom forecast third-quarter adjusted earnings of $1.07 to $1.09 a share on revenue of $1.12 billion to $1.21 billion, while analysts on average were projecting $1.03 a share on sales of $1.06 billion, according to FactSet.
For the full year, the company predicted adjusted earnings of $4.63 to $4.67 a share on revenue of $4.49 billion to $4.5 billion, while analysts on average were expecting $4.32 a share on sales of $4.5 billion.
“In addition to delivering innovation to our customers, in Q2 we delivered GAAP EPS of $0.59 and non-GAAP EPS of $1.34, both up meaningfully year over year. With this strong operating discipline, we grew operating cash flow by 31% year over year to $336 million,” Zoom Chief Executive Eric Yuan said in a statement announcing the results.
Shares of Zoom initially advanced more than 8% in after-hours trading Monday following the release of its results, but they later cooled, ending the extended session up 3.7%. Zoom’s stock has dipped 0.7% this year, while the broader S&P 500 index SPX has advanced 15%.
Earlier this month, Zoom joined scores of other tech firms and requested that most of its 7,400-person workforce return to the office. Employees within 50 miles of an office are now required to work in person on a part-time basis, a plan Zoom intends to roll out in August and September.
Despite escalating competition from the likes of Microsoft Corp. MSFT, +1.71%, Cisco Systems Inc. CSCO, +0.73% and Alphabet Inc.’s GOOGL, +0.71% GOOG, +0.64% Google, Zoom has been able to hold its own with a steady stream of products and services for consumers.