Q3 Zoom Revenue Up 367%

Expectations were high for fiscal 2021’s third quarter earnings report for Zoom video communications (NASDAQ: ZM). The growth of the cloud-based video platform has soared due to the coronavirus pandemic. This marked the third consecutive quarter of triple-digit growth.

Zoom reported revenue of $ 777 million, up 367% year-over-year, up from 355% growth in the second quarter and 169% in the first quarter. This easily surpassed analyst consensus estimates of $ 694 million and management’s high-end forecast, which surpassed $ 690 million.

Image source: Zoom Video Communications.

Zoom generated non-GAAP earnings per share (EPS) of $ 0.99, an 11x increase from $ 0.09 in the prior year quarter and easily exceeding analyst and company expectations, which stood respectively at $ 0.76 and $ 0.74. GAAP EPS of $ 0.66 surpassed $ 0.01 in the quarter a year ago.

The customer metrics were equally impressive. Zoom had a total of 433,700 customers with more than 10 employees, up 485% year-over-year, while customers contributing $ 100,000 in final 12-month revenue grew to 1,289, an increase of 136%. The dollar’s net rate of expansion, which measures the increase in spending by existing customers, exceeded 130% for the tenth consecutive quarter.

Cash generated from operating activities continued its rapid growth to $ 411 million, up 565% from just $ 62 million in the prior year quarter.

Zoom expects its uncontrolled growth to continue, albeit at a slightly more moderate pace. The company is driving revenue of between $ 806 million and $ 811 million, which would represent year-over-year growth of 146% at half of its forecast. Zoom expects adjusted EPS of $ 0.78, an increase of more than eight times.

Given the stock’s breathtaking run so far this year, it’s no surprise that investors have decided to take profits, as the stock has dropped roughly 5% in overtime trading.