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Zoom Video Rallies 10%+ on Q4 Earnings Beat and a $1.5 Billion Stock Buyback

Benzinga ·  Feb 26 16:42

$Zoom Video Communications (ZM.US)$ rallied more than 10% Monday in after-hours trading after the video-conferencing firm reported Q4 earnings and revenue beats and announced a $1.5 billion share buyback.

ZM rose 10.7% after-hours to $69.87 shortly before 4:45 p.m. ET after the company reported that Q4 revenue increased 2.6% year-over-year to $1.15 billion, beating analysts' consensus estimate of $1.13 billion.

The company also said quarterly earnings totaled $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. Some 3,800 of those customers were contributing more than $100,000 in trailing-twelve-month revenue at quarter's end, up approximately 9.8% year-over-year.

Separately, Zoom said it expects fiscal Q1 revenue to be approximately $1.125 billion, roughly in line with analyst estimates of $1.13 billion. The company also said it expects fiscal Q1 earnings to be between $1.18 and $1.20 per share vs. estimates of $1.13 per share.

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

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

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