Despite a big drop in the market today, with the S&P 500 down more than 3% as of this writing, shares of videoconferencing specialist Zoom Video Communications (NASDAQ:ZM) are up sharply. The stock rose as much as 11.2% and is up about 8% as of 1:56 p.m. EST.
The growth stock's gain follows Zoom's fourth-quarter update, which featured better-than-expected results and a rosy outlook for Q1 and the full year.
Zoom reported fourth-quarter revenue of $188 million, up 78% year over year. This easily beat analysts' average forecast for $177 million. Non-GAAP (adjusted) earnings per share during the period increased from $0.04 in the year-ago period to $0.15, crushing a consensus estimate of $0.07.
"Our execution also drove 61% growth in the number of customers with more than 10 employees and 86% growth in the number of customers contributing more than $100K of [trailing-12-month] revenue," said Zoom founder and CEO Eric Yuan in a press release about the quarter's results.
The company's revenue and adjusted EPS guidance for both Q1 and the full year of 2021 exceeded expectations as well. Management said it expected first-quarter revenue of about $200 million and adjusted EPS of approximately $0.10. This compares to analysts' average view for revenue and adjusted EPS of $186 million and $0.06, respectively. Further, Zoom guided for full-year revenue between $905 million and $915 million and adjusted EPS of $0.42 to $0.45. Analysts, on average, were expecting $868 million and $0.30, respectively.