Monday, June 7, 2021

Zooming In

Shares of Zoom Video Communications were up 2% in after-hours trading tonight following an earnings report in which the company's first-quarter revenue soared 191%, to $956 million.

My colleague Eric Savitz notes, though, that the company has grown revenue more than 300% in each of the last three quarters. "For this company, growth of nearly 200% represents a considerable slowdown," Eric wrote tonight.

Zoom also boosted its revenue outlook for its current fiscal year to somewhere between $3.975 billion and $3.99 billion. That was better than Wall Street's expectations for $3.8 billion. Keep in mind that in its last full year before the pandemic, Zoom had annual sales of $623 million. 

Everything is relative when it comes to Zoom. The stock is down 44% from last year's high. It's still up 61% over the last 12 months.

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