Shares of Zoom video communication (NASDAQ: ZM) fell 9% on Tuesday after the fourth quarter of the cloud communications leader.
Zoom’s revenue increased 369% year-over-year to $ 882.5 million. The use of Zoom’s cloud-based video, voice and chat tools continued grow on a quick clip – and many of its free users chose to upgrade to premium packages. Zoom’s customers with more than 10 employees increased by 470% to approximately 467,100.
“The fourth quarter marked a strong end to an unprecedented year for Zoom,” Eric Yuan said in a press release. “In FY2021, we have significantly scaled our operations to provide critical communications and collaboration services to our customers and the global community in response to the pandemic.”
Zoom’s profitability was also impressive. Adjusted operating income increased by 840% to $ 360.9 million while adjusted earnings per share increased by 713% to $ 1.22.
Looking ahead, Zoom’s pandemic – related expansion will slow down as the COVID-19 crisis subsides. The company will also face difficult comparisons compared to the previous year during the financial year 2022. Management sees revenue grow by approximately 42% to $ 3.77 billion and adjusted EPS rose 8% to $ 3.62. This projected slowdown in growth is likely what prompted some investors to sell their shares on Tuesday.
Yuan remains optimistic about Zoom’s long-term future. “When we enter FY2022, we believe we are well positioned for strong growth with our innovative video communications platform where our customers can build, run and grow their business; our globally recognized brand and a team that has always focused on delivering happiness to our customers. , says Yuan.
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