Zoom Video Communications, Inc. (ZM) shares have been on a skywalk. The video-telephony and online chat service provider is capturing the attention of investors in the market after the company reported its fourth quarter and fiscal year results. As of 6:43 AM EST, the per-share price was up by $35.54 with an 8.63% gain in the premarket. Let’s see what the reason behind this bullish sentiment is.
The company has reported breathtaking results for the fourth quarter and fiscal year 2021.ZM generated $882.5 million in revenue in the fourth quarter with a whopping 369% surge over the year. GAAP income of the fourth quarter from operations increased by 2327% YoY to $256.1 million. The non-GAAP income of the fourth quarter from operations has surged to $360.9 million with a record rise of 839% as compared to the same period in the last year. Fourth-quarter operating cash flow reached $399.4 million with a 993% rise year over year.
As far as fiscal year results are concerned, the company generated $2651.4 million in revenue which is 326% more than the previous year’s revenue. The fiscal year’s Gaap income from operations surged by 5097% YoY to $659.8 million. The fiscal year’s non-GAAP income from operations surged by 1009% YoY to $983.8 million. The operating cash flow of the fiscal year reached $1,471.2 million with an 869% rise year over year.
The Video Communication platform expects that its first-quarter revenue will be in the range of $900-$905 million which is higher than the estimates of $835.4 million by analysts. Furthermore, Zoom expects that it will report its EPS in the range of $0.95-$0.97 which is also higher than $0.70 estimated by Street.
With the rise of COVID-19, the conventional trend of work in office shifted to work from everywhere has greatly contributed to the success of Zoom due to the great demand of the platform. The stock is enjoying the bullish sentiment and will further grow in the future thus can be a good bet for investors.