Shares of Zoom Video Communications Inc (NASDAQ: ZM) are trading up in extended hours after the videoconferencing company reported market-beating results for its fiscal fourth quarter.
The tech stock is gaining also because the company’s guidance came in better than expected. Zoom is now calling for $4.11 to $4.18 of adjusted per-share earnings this year on up to $4.48 billion in revenue.
In comparison, experts had forecast $3.66 per share and $4.38 billion, respectively. Reacting to the earnings print on CNBC’s “Closing Bell: Overtime”, JMP Securities’ Patrick Walravens said:
The big picture is; it’s the eighth quarter in a row that business has slowed down. At some point Zoom has got to turn that around. They’ll need an act two, some new product to help them get there.
He currently has a “hold” rating on Zoom stock.
Zoom ended the quarter with over $5.0 billion of cash and marketable securities, which, as per Walravens, could see it opt for an acquisition.
When Monday went public, they invested in that IPO. So, the project management space might be super interesting for them. They also invested in Cvent when it went public. So, the event space would make sense for them.
Zoom stock is now up about 20% for the year. Earlier this month, the California-based company announced plans of lowering its headcount by 15%.
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