Zoom Video Q4 Earnings: Revenue Beat, EPS Beat, 'Democratizing AI Accessibility' And More

Zoom Video Communications Inc ZM reported fourth-quarter financial results Monday after the close. Here’s a look at the key metrics from the quarter.

Q4 Earnings: Zoom’s 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.

Enterprise revenue was up 4.9% year-over-year, while online revenue fell 0.5%. Net cash provided by operating activities was $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% year-over-year. 3,810 of those customers were contributing more than $100,000 in trailing 12 months revenue at quarter’s end, up approximately 9.8% year-over-year.

“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.”

Outlook: 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.

Zoom’s board also authorized a stock repurchase program of up to $1.5 billion. Management will hold a conference call to discuss these results at 5 p.m. ET.

Check This Out: Trading Strategies for Zoom Communication Stock Before And After Q4 Earnings

ZM Price Action: Zoom shares were up 12.8% after hours at $71.18 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Zoom.