Zoom Stock Climbs on Massive Earnings Beat

Expectations were high going into the fiscal 2021 first-quarter earnings report for Zoom Video Communications (NASDAQ: ZM). The cloud native video provider saw unprecedented demand in the face of the COVID-19 pandemic, but there was a lot of growth baked into the stock price, which had tripled since the beginning of 2020. Investors were concerned that the number of free users would hurt the results, but Zoom put those fears to rest, exceeding expectations by a wide margin.

Revenue of $328.2 million grew 169% year over year, accelerating from the 78% growth Zoom generated last quarter, and easily surpassing analysts' consensus estimates of $202 million and the high-end of management's forecast, which topped out at $201 million.

Image source: Zoom.

Source Fool.com