Zoom (NASDAQ:ZM) shares were trading around 15% higher after-hours following the company’s Q1 earnings results, with EPS of $1.03 coming in above the Street estimate of $0.87. Revenue increased 12% year-over-year to $1.07 billion, in line with the Street estimate. The company has approximately 198,900 enterprise customers as of the end of the quarter, representing a 24% year-over-year growth. The number of customers contributing more than $100,000 in trailing 12 months’ revenue was 2,916, up 46% year-over-year.
“In Q1, we launched Zoom Contact Center, Zoom Whiteboard and Zoom IQ for Sales, demonstrating our continued focus on enhancing the customer experience and promoting hybrid work. We believe these innovative solutions will further expand our market opportunity for future growth and expansion with customers,” said Zoom founder and CEO, Eric S. Yuan. “Additionally in Q1, we delivered revenue of over one billion dollars driven by ongoing success in Enterprise, Zoom Rooms, and Zoom Phone, which reached 3 million seats during the quarter. We also maintained strong profitability and cash flow, including 17% in GAAP operating margin, approximately 37% non-GAAP operating margin, approximately 49% operating cash flow margin, and over 46% adjusted free cash flow margin.”
The company expects Q2/23 EPS in the range of $0.90-$0.92, compared to the consensus of $0.88, and revenue in the range of $1.115-1.12 billion, compared to the consensus of $1.11 billion.
For the full 2023-year, the company expects EPS in the range of $3.70-$3.77, compared to the consensus of $3.53, and revenue in the range of $4.53-4.55 billion, compared to the consensus of $4.55 billion.
Shares of Zoom were down 51% year-to-date into the results.