Strong execution and increased adoption of video-first unified communications platform are some of the factors behind Zoom Video Communications Inc. (NASDAQ:ZM) impressive first quarter financial results. According to the Chief Executive Officer, Eric S. Yuan, the company is on track for strong growth in 2019, given the milestones achieved so far.
Zoom Q1 Financial Results
The earnings report indicate that revenues in the first three months, ended April 30, 2019 increased 103% year-over-year, to highs of $122 million. Operating income was also up in the quarter to $1.6 million compared to a loss from operations of -$1.7 million reported a year earlier.
Zoom Video Communications posted a $0.2 million GAPP net income attributed to shareholders, up from a net loss of -$1.3 million reported in the first quarter of fiscal 2018. The Company exited the quarter with cash and cash equivalent amounting to $732.2 million made up of $543.5 million in proceeds from the IPO and private placement.
According to Mr. Yuan, a highly efficient business model supported by a disciplined investment approach should contribute to more non-GAAP profitability and fresh cash flow going forward.
“Delivering happiness to our customers is our number one priority. If we keep them happy, we believe we will succeed today and in the future. We also believe that customers continue to view Zoom as a trusted, strategic partner for high-quality, reliable, frictionless communications to build relationships, increase their speed of business, and grow team productivity and engagement,” explained Mr. Yuan
For the second quarter, Zoom Video Communications is projecting revenues of between $ 129 million and $130 million. Non-GAAP income from operations is expected at between $2 million and $3 million. For the full year, the company is projecting revenues of between $535 million and $540 million and non-GAAP income (loss) of between $0.0 million and $3 million.
After a massive surge in May, the stock did come under pressure, leading to a drop from record highs of $91 to the $79 mark. The $80 mark is the immediate resistance level standing in the way of the stock making a run for 52-week highs after the recent correction.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.