🧐Zoom Posts Blockbuster Revenue for Q2

What you need to know before the US markets open 🇺🇸

Hey Global Investor, here's what you need to know before the US markets open.

Market Snapshot 📈

S&P 500 (Monday Close) 3,500.31 −7.70 (0.22%)

NASDAQ (Monday Close) 11,775.46 +79.82 (0.68%)

FTSE 100 (5 PM IST) 5888.50 -75.07 (-1.25%)

NIFTY 50 (Today's Close) 11,470.25 +82.75 (0.73%)

USDINR (5 PM IST) 72.88 (1 Year +2.52%)

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Zoom’s Q2 Revenue Zooms 3.55X in a Year

Zoom smashed analyst expectations and reported a blockbuster fiscal Q2, with revenue growth of 355% year-over-year.

What Happened? Zoom shares rose nearly 25% after-hours when the company revised its annual revenue guidance significantly upward for FY21. For the year, Zoom’s revenues are expected to increase by ~280% compared to FY20. Q2 revenue was up 3.55X compared to the year-before quarter.

Key Numbers from the Report:Earnings: Non-GAAP net income per share of 92 cents against expectations of 45 centsRevenue: $663.5M against $500.5M expectedNew customer subscriptions accounted for 81% of the revenue growth in Q2. Customer churn was also less than expected. Both these factors played a major role in the stellar results for Zoom. Just one metric hits this point home: Zoom’s monthly active users for the quarter averaged 148.4M, an eye-popping 4,700% Y-o-Y growth.At the same time, Zoom also raised guidance for the full fiscal 2021 by 33%, with revenue visibility of ~$2.37B, compared to prior full-year guidance of ~$1.78B.

With the pandemic showing no signs abating, dependency on Zoom’s services has consistently increased. The company is also bolstering its information security credentials by hiring new personnel and setting up new R&D centers. It added former National Security Advisor Lt. Gen. H.R. McMaster to its board, and announced the acquisition of Keybase, a secure messaging startup.

Market Reaction: Zoom’s priced closed 8.63% higher at $325.10. Before hours today, the shares are up 25.79%

Zoom Snapshot 📈

ZM $325.10 +25.83 (+8.63%)

Analyst Rating (32 Ratings) BUY 44%  HOLD 41%  SELL 16%

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Later Today 🕒

• 7.15 PM IST: IHS Markit manufacturing PMI (final)

• 7.30 PM IST: ISM manufacturing index

• 7.30 PM IST: Construction spending

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Fun Fact of The Day 🌞

Water is the only natural substance that is found in all three physical states - liquid, solid, and gas at normal Earth temperatures 

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