Zoom Video Communications (ZM) Shares Soar on Earnings Beat

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Zoom Video Communications
Source: Zoom Video Communications/@zoom_us

The stock price of Zoom Video Communications (NASDAQ: ZM) is surging after the company reported strong second-quarter financial performance.

During the extended trading on Monday, ZM shares rose as much as 25%. Today, it is trading around $449.44 per share, up more than 38% at the time of this writing around 1:18 PM EDT.

Obviously, investors are very optimistic about Zoom going forward since it reported second-quarter earnings and revenue that beat the estimate of Wall Street analysts.

Zoom second-quarter financial performance

During the quarter, Zoom posted $0.92 in earning per share, higher than the $.045 per share expected by analysts, according to Refinitiv.

Its revenue was $663.5 million, higher than the $500.5 million expected by analysts, according to Refinitiv.

In the same period last year, Zoom posted earnings of $0.08 per share. Thus, its earnings climbed 1,050% on an annual basis.

The company’s revenue increased by 355% from $145.5 million in the same quarter a year ago.

Zoom gained more customers amid the COVID-19 pandemic as government officials worldwide ordered their residence to stay at home to prevent the spread of the disease. People had no choice but to use technologies that would allow them to meet and collaborate virtually.