Zoom Video Reports 355% Q2 Revenue Increase, 458% Gain In Customers

Shares of Zoom Video Communications ZM closed at an all-time high Monday. The company reported second-quarter earnings after the markets closed, sending shares even higher.

What To Know: Zoom Video reported revenue of $663.5 million, a gain of 355% from the prior year. Net income came in at $274.8 million, compared to $24 million in the prior year’s second quarter. Earnings per share in the second quarter came in at 92 cents, up significantly from last year’s second quarter's 8 cents.

"Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom's video-first platform," said Zoom founder and CEO Eric Yuan.

The company reported it had 370,200 customers (counting those with 10 or more employees), which was a year-over-year increase of 458%. Zoom reported it had 988 customers that represented $100,000 in trailing 12-month revenue, an increase of 112% from the prior year’s period.

Why It’s Important: Zoom ended the first quarter with 265,400 customers, which was a 354% increase year-over-year. First-quarter revenue was up 169% year-over-year to $328.2 million. From the end of April, Zoom gained over 100,000 customers, representing strong quarter-over-quarter growth on top of the year-over-year figures.

Zoom is forecasting third-quarter revenue to come in a range of $685 million to $690 million. The company sees earnings per share hitting a range of 73 cents to 74 cents. Zoom updated its full-year guidance thanks to the strong quarter; It now sees full-year revenue hitting a range of $2.37 to $2.39 billion, a year-over-year increase of 281 to 284%.

Shares of Zoom hit an all-time high of $325.85 to end Monday’s trading session. In after-hours trading, shares were up another 8.8%.