Why Zoom Video Shares Are Surging After Hours

Zoom Video Communications Inc ZM shares are trading significantly higher in Monday's after-hours session after the company announced better-than-expected financial results and raised guidance. 

Zoom Video said first-quarter revenue increased 12% year-over-year to $1.074 billion, which beat the estimate of $1.07 billion, according to data from Benzinga Pro. The company reported quarterly earnings of $1.03 per share, which beat the estimate of 87 cents per share.

Zoom Video said it had approximately 198,900 enterprise customers at the end of the quarter, up 24% year-over-year. 2,916 customers contributed more than $100,000 in revenue over a trailing twelve-month period, up about 46% year-over-year. 

In the first quarter, Zoom Video launched Zoom Contact Center, Zoom Whiteboard, and Zoom IQ for Sales.

"We believe these innovative solutions will further expand our market opportunity for future growth and expansion with customers," said Eric Yuan, founder, and CEO of Zoom Video.

Zoom Video said it expects second-quarter revenue to be between $1.115 billion and $1.12 billion versus the estimate of $1.11 billion. The company expects second-quarter adjusted earnings to be between 90 and 92 cents per share versus the estimate of 88 cents per share.

Zoom Video guided for $4.53 billion to $4.55 billion in full-year revenue versus the estimate of $4.55 billion. The company expects full-year adjusted earnings to be between $3.70 and $3.77 per share versus the estimate of $3.53 per share.

Zoom Video provides a communications platform that connects people through video, voice, chat, and content sharing.

See Also: Here's Why Analysts Are Bullish On Zoom Despite Selloff

ZM Price Action: Zoom Video shares have traded between $79.03 and $406.48 over a 52-weeks period.

The stock was up 17.4% in after-hours at $104.57 at press time.

Photo: courtesy of Zoom Video.