Zoom Video Communications Inc. shares marched higher in the extended session Tuesday after the videoconferencing company raised its outlook for the year and topped Wall Street estimates for the quarter.
Zoom ZM, -1.15% shares, which had initially slid as much as 3% following the release of results, were last up 3% after hours. In Tuesday’s regular session, shares declined 1.2% declined to close at $327.72.
The company reported fiscal first-quarter net income of $227.4 million, or 74 cents a share, compared with $27 million, or 9 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.32 a share, compared with 20 cents a share in the year-ago period.
Revenue rose to $956.2 million compared with $328.2 million in the year-ago quarter.
Analysts surveyed by FactSet had forecast 99 cents a share on revenue of $908 million.
Given that fiscal first-quarter results cover business through the end of April, Tuesday’s report provides only a partial COVID-19 comparison given that U.S. travel bans and stay-at-home orders didn’t start rolling out until mid-March 2020.
“We kicked off the fiscal year with a very strong first quarter, posting 191% total year-over-year revenue growth combined with strong profitability and cash flow,” said Eric Yuan, Zoom founder and chief executive, in a statement. “With this solid start, we are pleased to raise our total guidance range.”
Zoom forecast adjusted earnings of $1.14 to $1.15 a share on revenue of $985 million to $990 million for the second quarter, and $4.56 to $4.61 a share on revenue of $3.98 billion to $3.99 billion for the year, up from its previous forecast range of $3.76 billion to $3.78 billion.
Analysts had estimated earnings of 96 cents a share on revenue of $934.9 million for the second quarter, and $3.77 a share on revenue of $3.8 billion for the year.
Back in March, Zoom reported adjusted earnings of nearly $1 billion for its fiscal year.
Over the past 12 months, Zoom shares have gained 60%, while the iShares Expanded Tech-Software Sector ETF IGV, -0.59% rose 32%, the S&P 500 index SPX, -0.05% grew 38%, and the tech heavy Nasdaq Composite Index COMP, -0.09% climbed 44%. Zoom shares are 44% off their all-time high of $588.84 set on Oct. 19.