Shares of Zoom Video Communications Inc (NASDAQ:ZM) sped higher in aftermarket trading Monday as the online meeting platform reported better-than-expected 4Q results.
For its fourth quarter to end January 31, 2023, Zoom reported total revenue of nearly $1.12 billion, up 4% year-over-year, versus consensus expectations of $1.1 billion.
Adjusted earnings per share came in much higher than the Street expected at $1.22 versus $0.80.
READ: Zoom could surprise on the upside against weak 4Q earnings expectations, analyst says
The company also reported full fiscal year total revenue of $4.39 billion, up 7% year over year.
In a statement accompanying the numbers, Zoom CEO Eric Yuan attributed the firm’s success to its “growing base of Enterprise customers.”
Yuan cited Zoom’s 27% growth in customers, which contributed to more than $100,000 in trailing 12 months revenue, as well as the 115% trailing 12-month net dollar expansion rate for Enterprise customers.
“Zoom One adoption continued to accelerate and helped drive Zoom Phone to grow more than 100% year over year, surpassing 5.5 million seats in Q4. Our emerging technologies such as Zoom Contact Center picked up pace as customer experience teams recognized the value of a modern, integrated collaboration solution,” Yuan said.
“While the macroeconomic situation continues to negatively impact our overall growth, we have maintained a healthy balance sheet and operating cash flow generation of approximately $1.29 billion.”
The online platform is expecting to see revenue of between $1.080 billion and $1.085 billion in its fiscal first quarter. For its full fiscal 2024 year, its guidance is set between $4.435 billion and $4.455 billion.
Shares of Zoom rose nearly 5.6% after the bell Monday to trade around $77.85.
Contact Angela at angela@proactiveinvestors.com
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