The California-based company reported revenues of $882.5 million during Q4, a 369% increase year-over-year. Zoom also said its non-GAAP diluted EPS for the period reached $1.22, which beat analysts estimates of 79 cents.
Additionally, the firm said its revenue for FY2021 came in at $2.65 billion — marking a 326% rise. And the non-GAAP diluted EPS figure for the period reached $3.34, which is a major improvement from 35 cents the previous year.
Moreover, Zoom included outlooks for both Q1 of FY2022 and for the entire year. For Q1, the firm is expecting revenues between $900 million and $905 million and non-GAAP diluted EPS between 95 cents and 97 cents. For all of FY2022, Zoom is looking for revenues between $3.76 billion and $3.78 billion and non-GAAP diluted EPS between $3.59 and $3.65.
With all of that in mind, a handful of Wall Street analysts weighed in on the earnings results for Zoom. And it appears all of them like what ZM stock has to offer.
- Keybanc’s Alex Kurtz said Zoom had another “standout” quarter, but also mentioned that investors should keep an eye on how the company supports its market valuation. Kurtz also boosted his price target for ZM stock from $603 to $610.
- James Fish of Piper Sandler wrote in a note to investors “that the party ‘is not over in comm software,’ providing reason for additional upgrades going forward.” That said, he also increased his one-year price target to $541 from $501 and held his “overweight” rating.
- Morgan Stanley’s Meta Marshall said Zoom’s results were “meaningful” and find the 2022 outlook to be promising. In turn, she boosted her one-year price target on ZM stock to from $390 to $420.
- Credit Suisse analyst Brad Zelnick called the Zoom figures “impressive” due to how the company attacks its addressable market. However, he also mentions that the “pace of new business deceleration limits the potential for meaningful upside to estimates. Nonetheless, he increased his one-year price target to $375 from $340, but maintained his “underperform” rating.
ZM stock was up nearly 7% to start the day, and is now up about 1.2%.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick Clarkson is a web editor at InvestorPlace.