Zoom Video Q4 results top estimates; analysts say investors were too bearish going into earnings By

By Yasin Ebrahim and Oufu International Foreign ExchangeSenad Karaahmetovic

-- (NASDAQ:) reported fourth-quarter results Monday that beat Wall Street estimates on both the top and bottom lines as new enterprise customer wins bolstered performance.

Zoom Video Communications stock is trading over 6% higher in pre-open trading Tuesday.

The company reported of $1.22 on revenue of $1.12 billion, beating estimates for EPS of $0.81 on revenue of $1.1B.

Enterprise customers were up 12% to about 213,000 year-over-year.

Customers contributing more than $100,000 in trailing 12-month revenue were up 27% to 3,471 from the same quarter last fiscal year.

Looking ahead, the company guided fiscal first-quarter adjusted EPS between $0.96 and $0.98, above consensus of $0.85. Revenue was expected to be in a range of $1.080B to $1.085B, below consensus of $1.11B.

For the full-year 2024, the company guided adjusted EPS between $4.11 and $4.18 on revenue in a range of $4.435B and $4.455B.

Goldman Sachs analysts said the results were "solid." While they reiterated a Neutral rating on Zoom stock, they lowered the price target from $92 to $85 per share.

"While we view the guide as increasingly de-risked, we would prefer to see revenue re-acceleration via Online stabilization and an improving Enterprise mix (via Phone/Contact Center) before becoming more constructive," analysts said in a client note.

Morgan Stanley analysts added that Zoom delivered better-than-feared results.

"As previewed, investors had leaned too bearish into the print, so even as company reduced top line outlook, it was less than investors expected," the analysts wrote.

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