By Yasin Ebrahim
Investing.com - Zoom Video Communications (NASDAQ:ZM) surged in afterhours Monday after lifting its annual guidance and reporting first-quarter earnings that beat Wall Street estimates.
Zoom Video Communications was up about 15% following the report.
Zoom Video Communications reported EPS of $1.03 on revenue of $1.07 billion, compared with expectations for EPS of 88 cents on revenue of $1.07 billion.
The beat on the top and bottom lines were driven by "ongoing success in Enterprise, Zoom Rooms, and Zoom Phone, which reached 3 million seats during the quarter," the company said.
Revenue customers contributing more than $100,000 in the trailing 12 months jumped about 46% from the prior-year period.
Enterprise customers rose 24% to about 198,900 from the same quarter last fiscal year, and the trailing 12-month net dollar expansion rate, a key performance metric, for enterprise customers was 123%.
For the second-quarter, EPS was estimated in a range of $0.90 to $0.92 on revenue of about $1.12 billion. That compared with estimates for EPS of $.87 on revenue of $1.11 billion.
For the full year, EPS was expected between $3.70 and $3.77 on revenue of of between $4.530 billion and $4.550 billion. That compared with prior EPS of between $3.45 and $3.51.
Zoom is down about 51% year to date after struggling to maintain the momentum racked up during the pandemic when the work-from-home trend bolstered demand for video conferencing software.