Investing.com - Zoom Video Communications (NASDAQ:ZM) rallied in postmarket hours as the video platform company beat guidance and earnings expectations following a surge in customer additions.
In its maiden report as a public company, Zoom Video generated earnings of $0.03 a share on revenue of $122 million, beating expectations from Capital IQ for earnings of 1 cent a share on revenue of $111.7 million, sending its shares soaring 9.2% to $86.73 in after-hours trading.
The better-than-expected results were driven by an 86% increase in customers to 58,500 with 405 customers contributing more than $100,000 in trailing 12-month revenue, up 120% from the same quarter last year.
Looking ahead, the company issued upside guidance for the second quarter. It sees earnings in the range of $0.01 to $0.02 a share, in line with estimates, while revenue estimates of $129 million to $130 million were above expectations of $122.06 million.
For the full year, meanwhile, the company sees earnings in the range of $0.02-$0.03, compared with expectations for a loss of $0.01. Revenues guidance of $535 million to $540 million was well ahead of estimates of $520.25 million.
Zoom, which went public in April, has drawn praise from analysts as it is one of the few debut companies to generate a profit. Pinterest (NYSE:PINS), Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT), all of which also have gone public over the past few months, are in the red.
Analysts have touted Zoom as a potential leader in video conferencing over rivals like LogMeIn.
Zoom closed the regular session at $79.43, up 1.28%, and remains well above its IPO price of $36.