Zoom Video Communications (Nasdaq: ZM), which provides video and audio conferencing services, topped Wall Street’s views for its first quarter of fiscal 2020. Zoom reported adjusted earnings of 3 cents per share on revenue of $122 million. Analysts had predicted the company to post breakeven earnings on revenue of about $111 million. Zoom stock surged more than 10% during the extended hours of trading.
The San Jose, California-based tech firm reported GAAP net income attributable to common stockholders of $0.2 million, or $0.00 per share, compared to GAAP net loss attributable to common stockholders of $1.3 million, or a loss of $0.02 per share in the first quarter of fiscal 2019.
For the second quarter of fiscal 2020, revenue is expected to be between $129 million and $130 million and non-GAAP income from operations is expected to be between $2 million and $3 million. Q2 non-GAAP EPS is expected to be approximately $0.01 to $0.02.
For the fiscal year 2020, Zoom expects revenue to be between $535 million and $540 million and non-GAAP income (loss) from operations is expected to be between $0.0 million and $3.0 million. Full year non-GAAP EPS is expected to be approximately $0.02 to $0.03.
For the fiscal year ended January 31, 2019, customers that contributed more than $100,000 of the company’s annual revenue more than doubled to 344 from 143 customers a year ago.
At the end of Q1, Zoom had approximately 58,500 customers with more than 10 employees, up approximately 86% from the same quarter last year. 405 customers contributed more than $100,000 in trailing 12 months revenue, up approximately 120% from the same quarter last year.
“In our first quarter as a public company, strong execution and expanding adoption of Zoom’s video-first unified communications platform drove total revenue growth of 103% year-over-year. While we remain focused on strong growth, we are also pleased that our highly efficient business model and disciplined investment approach contributed to positive non-GAAP profitability and free cash flow,” said CEO Eric Yuan.
Zoom Video stock, which reached its peak price ($91.46) on May 20, had appreciated more than 100% from its IPO price of $36. Shares of Zoom ended up 1.78% at $79.43 today.