Shares of Zoom Video Communications (NASDAQ:ZM) gained in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2022. Earnings per share came in at $1.22, which beat analysts’ consensus estimate of $0.81 per share. Sales increased by 3.7% year-over-year, with revenue hitting $1.12 billion. This beat analysts’ expectations of $1.1 billion.
Zoom’s enterprise revenue was up 18% over this time last year, reaching a total of $636.1 million. Meanwhile, Zoom’s biggest payers—those contributing over $100,000 over 12 months—were up 27% against last year. Better yet, Zoom is also reducing churn rates, as they were down 40 basis points against this time last year, reaching 3.4%. Online MRR from customers running at least 16 continuing months was up a whopping 72%, 1,300 basis points more in a year-over-year comparison.
Looking forward, management now expects revenue for Q1 2023 to be in the range of $1.08 billion to $1.085 billion. EPS is expected to be in the range of $0.96 – $0.98. For reference, analysts were expecting $1.11 billion in revenue and $0.86 in EPS.
Overall, Wall Street has a consensus price target of $80.60 on Zoom Video Communications, implying 9.29% upside potential, as indicated by the graphic above.
