Zoom projects annual sales signalling growth after Covid-19 pandemic
Zoom Video Communications projected annual revenue that
would top analysts’ estimates, signalling the video meeting service expects to
remain a ubiquitous presence in daily life even as the pandemic recedes. Shares
jumped about 10 per cent extended trading.
Sales will be as much as $3.78 billion in fiscal year 2022, the
San Jose, California-based company said on Monday in a statement. While the
projected annual revenue growth of 43 per cent is far short of Zoom’s 326 per
cent increase in the fiscal year ended January 31, it topped the 37 per cent
average estimate of analysts, according to data compiled by Bloomberg. Profit,
excluding some items, will be as much as $3.65 a share. Analysts projected
$2.97.
Investors have feared the software maker couldn’t continue the
dramatic growth in 2020 that came as people forced home in coronavirus lockdowns
connected remotely on the service to work, school, friends and family. While
Zoom’s stock jumped almost fivefold last year as it became one of the biggest
beneficiaries of the pandemic, it had gained just 11 per cent during the first
two months of 2021 before surging almost 10 per cent Monday to close at $409.66
in New York. Chief Executive Officer Eric Yuan has tried to diversify Zoom’s capabilities
and add products such as a cloud phone system to appeal to more large
enterprises and small- and mid-sized businesses.
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