The company that perhaps best represented the pandemic struggles of 2020, Zoom, saw its stock on the rise through early Tuesday trading after a positive earnings report.
Zoom stock rose as much as 7% on Tuesday before settling back toward a gain of only a few points.
Total quarterly revenue came in at $882.5 million, beating analysts’ expectations of $811.8 million, and earnings were $1.22 per share, adjusted, vs. 79 cents per share as expected by analysts, according to Refinitiv.
The videoconferencing platform used – and, of course, misused quite a bit – during the work-from-home era, believes further growth is on the horizon.
The stock already had jumped 9.65% on Monday, closing at $409.66 a share ahead of the earnings announcement.
From the beginning of the COVID-19 onslaught, millions of Americans migrated to their computers for work, birthdays, virtual family gatherings and more. The numbers lived up to the expectations.
Through Jan. 31, Zoom executives reported revenue up 369% year-over-year.
The high-water mark came in October, when the stock price reached $560 per share.
Looking ahead, some industry analysts and investors debated whether Zoom would maintain its position as a necessary form of communications.
Zoom CEO, Eric Yuan, is optimistic.
“As we enter FY2022, we believe we are well positioned for strong growth with our innovative video communications platform,” he said in a statement to accompany the earnings.
And a year from now, the company believes total revenue will reach $3.76 billion to $3.78 billion, higher than Wall Street predictions.