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Zoom stock (NASDAQ: ZM) price soared 40% after topping analyst’s revenue and earnings estimates for the second quarter by a wide margin. After the latest gains, shares of video communication company are up more than 370% year to date. Zoom stock price is currently trading at an all-time high of $457.
Zoom’s second-quarter revenue of $663.5 million rose 355% from the year-ago period and beats analysts’ consensus estimate by $163 million.
The business shift towards online working systems has provided huge support to video communication company during the second quarter. The company ended the second quarter with approximately 370,200 customers per more than 10 employees. This represents a growth of 458% from the same quarter last year.
“Organizations are shifting from addressing their immediate business continuity needs to support a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform. At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases,” said Zoom founder and CEO, Eric S. Yuan.
Zoom has raised its third-quarter and full-year outlook amid robust demand. The company now expects third-quarter revenue in the range of $685 million to $690 million, up sharply from the consensus for $492.9 million. It forecast earnings per share in the range of $0.73-$0.74, almost double compared to consensus for $0.35.
For the full year, Zoom anticipates revenue around $2.37 billion to $2.39 billion, up 281% to 284% from the past year.
Despite lofty valuations, the market pundits are showing confidence in future fundamentals and the share price performance. CFRA analyst Keith Snyder has set a price target of $460.
“While we still believe the current valuation is ludicrously high, our upgrade to Hold reflects our view that the stock’s current momentum is simply too strong. We project revenue growth of 284% in FY 21, but see a rapid deceleration to 26% growth in FY 22,” CFRA Analyst Keith Snyder said.