Zoom Q4 Earnings Highlights: Revenue Up 21%, $1B Buyback, Guidance Below Estimates And More

Zoom Video Communications Inc ZM reported fourth quarter and full fiscal year financial results after market close Monday. Here are the key highlights for investors.

What Happened: Zoom reported fourth-quarter revenue of $1.07 billion, up 21% year-over-year and ahead of a consensus estimate of $1.05 billion, according to Benzinga Pro. The company reported full fiscal year revenue of $4.1 billion, up 55% year-over-year.

Zoom reported earnings per share of $1.29, beating the consensus estimate of $1.05 per share.

Zoom reported the number of customers that represent $100,000 or more (2,275) in trailing 12-month revenue were up 66% year-over-year. The company ended the year with 509,800 customers, up 9% year-over-year.

Related Link: Zoom Video Q3 Earnings Highlights: Revenue Up 35%, $100K Customers Grow 94% 

What’s Next: Along with announcing quarterly earnings, Zoom announced its Board of Directors authorized the purchase of up to $1 billion in shares. The stock buyback program will end in February 2024.

Zoom is guiding for first-quarter revenue of $1.07 billion to $1.075 billion, below a street estimate of $1.1 billion. The company sees first-quarter EPS coming in a range of 86 cents to 88 cents per share.

For the full fiscal year of 2023, Zoom is guiding for revenue in a range of $4.53 billion to $4.55 billion. The estimate is currently $4.71 billion from analysts.

“Looking forward, we are addressing a large opportunity as we expect customers will continue to transform how they work and engage with their customers,” Zoom founder and CEO Eric Yuan said.

ZM Price Action: Zoom shares are down 5% to $127.24 in after-hours trading Monday.