NASDAQ$ZM

Zoom Video Communications Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Zoom's Q4 2021 earnings showcased substantial growth, driven by increased customer acquisition and expansion.

Zoom Video Communications reported a strong fourth quarter, with revenue up 369% year-over-year to $882.5 million. GAAP income from operations increased significantly, and the company's customer base expanded substantially. The company is optimistic about future growth.

  • Total revenue for the quarter was $882.5 million, up 369% year-over-year.
  • GAAP income from operations for the quarter was $256.1 million.
  • GAAP net income per share was $0.87 compared to $0.05 in Q4 2020.
  • Zoom had approximately 467,100 customers with more than 10 employees, up approximately 470% year-over-year.

Headline financials

Total Revenue

$882M

Previous: $188M+368.8%
EPS (adj)

$1.22

Previous: $0.15+713.3%
Customers >$100k TTM

1.6K

Previous: 641+156.5%
Net Dollar Expansion Rate

130.0%

Previous: 130.0%+0.0%
Capital Expenditures

$21.5M

Previous: $9.95M+115.6%
Free Cash Flow

$378M

Previous: $26.6M+1320.8%
Net Income

$261M

Previous: $15.3M+1603.3%
Operating Income

$256M

Previous: $10.6M+2316.2%
Gross Profit

$615M

Previous: $156M+295.1%
Cash & Equivalents

$2.24B

Previous: $283M+691.3%
Total Assets

$5.3B

Previous: $1.29B+310.7%
Stock-Based Comp

$96.3M

Previous: $26.6M+262.2%

Revenue & EPS history

Zoom · Revenue · Quarterly

$882M

Q4 2021+368.8%vs Q4 2020
Beat estimate in 10 of 11 quarters(91%)
ActualEstimate

Revenue by segment

Zoom · $1.24B total across 2 segments · Q1 2027

  • Enterprise
    $756M
  • Online
    $483M

Forward guidance

Zoom provided guidance for Q1 2022 and full fiscal year 2022, projecting continued revenue growth and non-GAAP profitability.

Tailwinds

  • Q1 2022 total revenue is expected to be between $900.0 million and $905.0 million.
  • Q1 2022 non-GAAP income from operations is expected to be between $295.0 million and $300.0 million.
  • Q1 non-GAAP diluted EPS is expected to be between $0.95 and $0.97.
  • FY 2022 total revenue is expected to be between $3.760 billion and $3.780 billion.
  • FY 2022 non-GAAP income from operations is expected to be between $1.125 billion and $1.145 billion.

Headwinds

  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future.
  • The potential effect on user growth rate once the impact of the COVID-19 pandemic tapers.
  • Users return to work or school or are otherwise no longer subject to shelter-in-place mandates.
  • Impact of COVID-19 on the overall economic environment.
  • Delays or outages in services from our co-located data centers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

+2.7%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.3%

Avg return

30 days after

44%

14 / 32 earnings

Positive

+52.9%

Q2 2021

Best reaction

-18.3%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027+9.3%+3.4%-10.6%
Q4 2026-11.6%-14.0%-9.0%
Q3 2026+9.8%+8.1%+11.7%
Q2 2026+12.7%+10.6%+15.0%
Q1 2026-0.1%-4.1%-5.2%
Q4 2025-8.5%-9.1%-5.3%
Q3 2025-2.9%-3.7%-0.2%
Q2 2025+15.1%+20.6%+14.2%
Q1 2025-0.5%-1.8%-12.4%
Q4 2024+7.5%+11.8%+5.1%
Q3 2024+2.8%+0.6%+9.0%
Q2 2024-0.7%+2.1%+3.8%
Q1 2024-5.4%-4.5%-3.5%
Q4 2023+0.9%-4.2%-4.5%
Q3 2023-5.5%-7.6%-14.3%
Q2 2023-18.3%-18.2%-23.7%
Q1 2023+5.1%+23.0%+28.3%
Q4 2022-2.0%-13.1%-2.3%
Q3 2022-17.8%-12.4%-23.1%
Q2 2022-15.1%-12.5%-24.5%
Q1 2022-1.3%+1.3%+16.6%
Q4 2021-0.2%-9.7%-14.0%
Q3 2021-13.8%-13.1%-25.1%
Q2 2021+52.9%+23.6%+57.1%
Q1 2021+9.7%+1.7%+28.2%
Q4 2018+28.9%+11.6%+21.2%
Q4 2020+6.4%-3.2%+9.1%
Q3 2020-10.3%-7.7%-3.8%
Q2 2018-1.1%+3.7%-12.5%
Q2 2020-8.7%-14.1%-18.2%
Q1 2018+28.4%+29.4%+15.7%
Q1 2020+20.5%+21.6%+17.7%
Q4 2019
Q3 2018

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