What's Going On With Zoom Video Stock Today?

Zoom Video Communications Inc ZM shares are trading higher Tuesday after the company reported better-than-expected financial results, issued strong guidance and announced a new share repurchase program.

What Happened: Zoom said fourth-quarter revenue increased 2.6% year-over-year to $1.15 billion, which beat the consensus estimate of $1.13 billion. The company reported quarterly earnings of $1.42 per share, which beat analyst estimates of $1.15 per share, according to Benzinga Pro.

Net cash provided by operating activities totaled $351.2 million in the fourth quarter and free cash flow came in at $332.7 million. Zoom ended the quarter with approximately 220,400 enterprise customers, up 3.5% on a year-over-year basis.

Zoom's board also authorized a stock repurchase program of up to $1.5 billion. 

"In FY24, we unveiled Zoom AI Companion, our generative AI digital assistant, aimed at boosting productivity, enhancing team effectiveness, and fostering skill development across the Zoom platform," said Eric Yuan, founder and CEO of Zoom.

"We're committed to democratizing AI accessibility, offering it to all our customers regardless of business size, included at no extra charge with a paid license."

Zoom expects fiscal first-quarter revenue to be approximately $1.125 billion versus estimates of $1.13 billion. The company expects first-quarter earnings to be between $1.18 and $1.20 per share versus estimates of $1.13 per share. 

Full-year revenue is expected to total approximately $4.6 billion versus estimates of $4.655 billion. Full-year earnings are expected to be between $4.85 and $4.88 per share versus estimates of $4.71 per share.

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ZM Price Action: Zoom shares were down approximately 12% year-to-date heading into the print. The stock was up 8.64% at $68.28 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Zoom.