Typically at the time these companies hit the market they’re still burning significant amounts of cash. Zoom is an exception, in that it earned $7.58 million in net income last year. Revenue surged 118 percent to $330.5.

Zoom Technologies soared 56,000% in the past 30 days — as unrelated Zoom Video prepared its IPO

Apr 18, 2019

Much has been made of the buzzy public debut of Zoom Video Communications Inc., the enterprise videoconference software company with a $1 billion valuation, that made its debut on the Nasdaq Inc. exchange Thursday midday, but the shares of another unrelated company have been more aptly zooming over the past 30 days.

Zoom Technologies Inc. an over-the-counter penny stock, with the ticker “ZOOM,” which last month was worth less than a penny, has soared an eye-popping 56,000% in the past 30 days, raising the question of whether it has been riding the euphoria surrounding the other Zoom.

Its recent gains mean that $100 invested in the entity on March 21, when shares were around $0.005, would have netted an investor about $84,000 as of Thursday morning.

Business Insider spotlighted the apparent ticker confusion back in March, but the shares have only extended their parabolic surge, indicating that seemingly clueless investors continue throwing money (rightly or wrongly, depending on one’s perspective) at the wrong Zoom.

Zoom Tech., for one, hasn’t reported revenue since 2011 and apparently filed with the Securities and Exchange Commission to end its tenure as a publicly listed company to no avail.

SAN JOSE, Calif., May 01, 2019 (GLOBE NEWSWIRE) -- Zoom Video Communications, Inc. (NASDAQ: ZM) will release results for its first quarter of fiscal year 2020 on Thursday, June 6, 2019, after the market closes.

First Quarter Fiscal 2020 Financial Highlights:

• Revenue: Total revenue for the quarter was $122.0 million, up 103% year-over-year.
• Operating Income and Operating Margin: GAAP income from operations for the first quarter was $1.6 million, up from a loss from operations of $1.7 million in the first quarter of fiscal 2019. After adjusting for non-cash, stock-based compensation expense, non-GAAP income from operations for the first quarter was $8.2 million, up from a non-GAAP loss from operations of $0.8 million in the first quarter of fiscal 2019. For the first quarter, GAAP operating margin was 1.3% and non-GAAP operating margin was 6.7%.
• Net Income (Loss) and Net Income (Loss) Per Share: GAAP net income attributable to common stockholders for the quarter was $0.2 million, or $0.00 per share, compared to GAAP net loss attributable to common stockholders of $1.3 million, or a loss of $0.02 per share in the first quarter of fiscal 2019.
  .
  Non-GAAP net income for the quarter was $8.9 million, after adjusting for non-cash, stock-based compensation expense and undistributed earnings attributable to participating securities. Non-GAAP net income per share was $0.03, as compared to non-GAAP net loss of $0.5 million, or a loss of $0.00 per share in the year ago quarter. The non-GAAP weighted average share count has been adjusted to reflect the common stock issued in connection with the Initial Public Offering (IPO), including the concurrent private placement, that are outstanding as of the end of the period as if they were outstanding as of the beginning of the period for comparability.
• Cash: Total cash, cash equivalents, and marketable securities as of April 30, 2019 was $737.2 million and included $543.5 million in proceeds from the IPO and private placement, net of underwriting discounts and commissions and other offering costs.
• Cash Flow: Net cash provided by operating activities was $22.2 million for the first quarter, compared to $2.8 million in the first quarter of fiscal 2019. Free cash flow was positive $15.3 million, compared to negative $1.1 million in the first quarter of fiscal 2019.

Customer Metrics: Drivers of total revenue include acquiring new customers and expanding across existing customers. At the end of the first quarter of fiscal 2020, Zoom had:

• Approximately 58,500 customers with more than 10 employees, up approximately 86% from the same quarter last year.
• 405 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 120% from the same quarter last year.
• A trailing 12-month net dollar expansion rate in customers with greater than 10 employees above 130% for the 4th consecutive quarter.

The company said it expects earnings of 1 cent to 2 cents a share, excluding certain items, in the second quarter, on $129 million to $130 million in revenue. Analysts surveyed by Refinitiv had been expecting Zoom to break even in the quarter, with $122.1 million in revenue.

Zoom’s forecast for the full fiscal year was 2 cents to 3 cents in earnings per share, excluding certain items, and $535 million to $540 million in revenue. The Refinitiv consensus estimates were a loss of 3 cents in earnings per share, excluding certain items, and revenue of $520.3 million.

On Mac, if you have ever installed Zoom, there is a web server on your local machine running on port 19421. You can confirm this server is present by running lsof -i :19421 in your terminal.

Zoom Again Lifts Full-Year Outlook as Sales Surge During Pandemic

Aug. 31, 2020

Zoom Video Communications Inc. again raised its full-year outlook for a second time during the pandemic, cementing its position as one of the biggest corporate winners from the broad-based shift to working from home and remote schooling during the global health crisis.

The coronavirus pandemic almost overnight turned San Jose, Calif.-based Zoom from a niche application used by companies to a tool many Americans have come to rely on to stay connected with co-workers, family and friends. Its user numbers have skyrocketed.

Zoom on Monday reported sales of $663.5 million in the July quarter, up from $145.8 million a year earlier, as it posted a profit of $185.7 million. Analysts surveyed by FactSet had expected sales of $500 million and net income of $134 million for the three months ended July 31.

Zoom on Monday said the number of its most lucrative customers more than doubled from a year ago. But its appeal has become increasingly broad based. Smaller companies, with 10 or fewer employees, accounted for around 20% of sales about six months ago and now represent 36% of revenue.

“Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere and connecting anywhere,” Zoom Chief Executive Eric Yuan said.

The pandemic has driven many companies to embrace digital tools on an accelerated timeline. That has lifted the fortunes of cloud-service providers such as Amazon.com Inc. and Microsoft Corp., as well as the companies that run on the cloud, such as Salesforce.com Inc., which last week raised its full-year outlook, and Zoom.

The boost in popularity has put Zoom in the battle for how businesses work remotely, pitting the company against far larger rivals such as Microsoft and Facebook Inc.

Zoom lifted its full-year outlook for sales to a range of $2.37 billion to $2.39 billion, with an adjusted operating profit of between $730 million and $750 million. It previously raised its outlook to full-year sales to between $1.78 billion and $1.8 billion, with adjusted operating income of $355 million to $380 million.

While many companies have furloughed or cut stuff, including in Silicon Valley, Zoom, which went public last year, has been trying to rapidly add personnel to manage issues its growth has brought to the forefront. It added 500 staff in the quarter, 53% more than a year ago.

Zoom’s cost of revenue climbed to $192.3 million from $27.9 million a year earlier as it continues to add computing capacity to accommodate the surge in users. It has paid third-party cloud providers such as Amazon and Oracle Corp. for additional capacity, weighing on margins. Adjusted gross margins fell to 72.3% from 82.2% in the year-ago period.

In the latest quarter, Zoom’s strong revenue helped offset higher costs as the company added staff and made other investments to deliver growth and address some of its security challenges. But Chief Financial Officer Kelly Steckelberg said margins would likely retreat over the remainder of the financial year as it hires workers and adds capacity to manage the larger scale of the business.

Zoom last month rolled out Zoom from Home—a lineup of dedicated videoconferencing devices designed to make the use of its software—now that the shift to remote work has become a more enduring setup.

In the current quarter, Zoom said it expects sales of $685 million to $690 million and adjusted earnings per share of 73 cents to 74 cents. Analysts surveyed by FactSet have forecast sales of $492 million and adjusted earnings of 45 cents a share.