On Tuesday, after the market closed, Zoom Video Communications Inc’s shares increased by 3.2% after taking a dip initially. The predictions for the running quarter revenue have reported to be stronger than estimates.
This happened due to the adoption of the new work-from-home hybrid work models, which has driven a steady demand for the company’s video conferencing tools.
Due to the covid-19 pandemic that struck our world last year, Zoom was more in demand to be used in schools for classes and for work purposes.
However, with the increasing rate of vaccine administrations, analysts wonder about the sustainability growth rate of the company.
Joe McCormac, senior analyst at Third bridge said, “The extent to which Zoom can compete sustainability with the likes of Cisco and Microsoft remains to be seen over the next few quarters as we begin to enter true COVID comparable quarters.”
For the first quarter, zoom reported that its sales were up 191% year on year to $956.24 million, while the adjusted earnings per share was $1.32.
The cash from all operating activities came up to $533.3 million with a free cash flow of $454.2 million.
Hence, Zoom Video Communications was able to clarify some of the doubts of analyst by estimating their Q2 revenue earnings between $985- $990 million with an adjusted EPS of between $1.14-$1.15.
The year on year forecasted revenue stands at $3.98-$3.99 billion.
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