Zoom Video Q3 Earnings: EPS And Revenue Beat, Customers Count Up 5%, Upbeat Outlook And More

Zoom Video Communications Inc ZM reported third-quarter financial results after the close on Monday. Here's a rundown of the report and a look at what's driving shares higher after hours.

Q3 Earnings: Zoom said third-quarter revenue increased 3.2% year-over-year to $1.14 billion, which beat the consensus estimate of $1.12 billion. The company reported quarterly earnings of $1.29 per share, which beat analyst estimates of $1.08 per share, marking the 18th consecutive EPS beat for Zoom, according to Benzinga Pro.

Enterprise revenue was up 7.5% year-over-year. Operating margin came in at 14.9% in the quarter. Operating cash flow totaled $493.2 million, up 67% year-over-year.

Zoom ended the quarter with approximately 219,700 enterprise customers, up 5% year-over-year. 3,731 of those customers are contributing more than $100,000 in trailing 12 months revenue, up approximately 13.5%.

"In Q3, revenue came in ahead of guidance as we bolstered Zoom's all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion and continued to evolve our customer and employee engagement solutions," said Eric Yuan, founder and CEO of Zoom.

"Our strong performance across a number of metrics has enabled us to increase our full year outlook for revenue and non-GAAP profitability, as well as for free cash flow."

Outlook: Zoom said it expects fourth-quarter revenue to be between $1.125 billion and $1.13 billion versus estimates of $1.13 billion. The company expects fourth-quarter earnings to be between $1.13 and $1.15 per share versus estimates of $1.00 per share. 

Full-year revenue is expected to be between $4.506 billion and $4.511 billion versus estimates of $4.5 billion. Full-year earnings are expected to be between $4.93 and $4.95 per share versus estimates of $4.27 per share.

Shares appear to be reacting favorably to the company's better-than-expected quarterly results and upbeat forward outlook. 

Management will hold a conference call to discuss these results at 5 p.m. ET.

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ZM Price Action: Zoom shares were up 6.09% after hours at $70.02 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Zoom.