Zoom Video Communications Inc (NASDAQ:ZM) stock gained after the video conferencing platform’s second quarter earnings impressed and it raised its full-year outlook.
Revenue grew 4.7% from the year-ago quarter to $1.22 billion, ahead of Wall Street estimates of $1.2 billion.
Adjusted earnings per share were up 10% year-over-year at $1.53, topping the consensus of $1.38.
“We delivered an across-the-board strong Q2 marked by achieving our highest year-over-year revenue growth in 11 quarters and expanding GAAP operating margin year over year by 9 percentage points,” Zoom CEO Eric Yuan said in a statement.
“With our robust performance, we are happy to raise our full year outlook for revenue, non-GAAP operating income, as well as free cash flow, which we now expect to be in the range of $1.74 billion to $1.78 billion.”
The company expects full-year revenue in the range of $4.825 billion and $4.835 billion, above the Street’s estimate of $4.807 billion.
Adjusted EPS in the range of $5.81 to $5.84, also ahead of estimates of $5.61.
Analysts at Wedbush maintained their ‘Outperform’ rating and $95 price target on Zoom post-earnings.
“This was another solid quarter by Zoom as the company’s new go-to-market strategy gains further traction while improving its product portfolio with AI front and center to capitalize on the growth opportunities across the enterprise landscape while the online business continues to stabilize,” Wedbush wrote.
Shares of Zoom traded 4.2% higher at $76 before Friday’s opening bell in New York.