Shares of prominent enterprise software companies, particularly those that benefit from the ongoing shift to remote work, are soaring today after Zoom Video Communications (NASDAQ:ZM) reported blockbuster second-quarter results yesterday. Zoom's revenue more than quadrupled year over year, as the COVID-19 pandemic has made its videoconferencing service a household name and enterprise customers keep gravitating to the platform.
Here's how other related tech stocks were trading as of 12:30 p.m. EDT:
- Slack (NYSE:WORK): Up 4%.
- Okta (NASDAQ:OKTA): Up 5%.
- Zscaler (NASDAQ:ZS): Up 10%.
- Talend (NASDAQ:TLND): Up 9%.
- MongoDB (NASDAQ:MDB): Up 7%.
- Zuora (NYSE:ZUO): Up 7%.
Enterprise messaging platform Slack is preparing to report fiscal second-quarter results a week from today. The company expects revenue to grow 42% to 44% to a range of $206 million to $209 million, based on guidance issued in June. Slack's paid customer base has been expanding during the outbreak, now topping 122,000 as companies increasingly rely on the collaboration platform to maintain productivity.
Enterprise identity management specialist Okta reported financial results just last week, and they showed a 43% jump in revenue to $200 million as the total customer base approaches 9,000. Of those customers, nearly 1,700 now generate over $100,000 in annual contract value. Following the release, Guggenheim and RBC Capital maintained buy (or equivalent) ratings while lifting their price targets to $230 and $235, respectively.
Cloud-based cybersecurity platform Zscaler is also scheduled to report quarterly results next Wednesday. The company's emphasis on mobile devices makes Zscaler uniquely suited to securely provide remote access to employees working from home. Guidance for the fiscal fourth quarter calls for revenue of $117 million to $119 million, representing 37% growth at the midpoint compared to last year.
French data analytics company Talend isn't growing as fast as others in terms of recognized revenue, but the company is focused on growing its cloud annual recurring revenue (ARR), which jumped 128% last quarter. Cloud ARR is currently $75 million and Talend is targeting $100 million by year-end. The company was recently named a leader in Gartner's 2020 Magic Quadrant for data integration tools. Talend is scheduled to present at a Citi tech conference next week on Sept. 10.
Database specialist MongoDB will report fiscal second-quarter results tomorrow after the close. The company acknowledged some impacts from COVID-19 last quarter but has been encouraged by improving conditions. MongoDB has been beefing up its C-suite in recent months, appointing a new chief technology officer, chief people officer, and chief marketing officer. The midpoint of revenue guidance represents 27% growth in the fiscal second quarter.
Cloud-based subscription platform Zuora will also report fiscal second-quarter results on Wednesday after market close. Zuora shares jumped last week after the company expanded its partnership with GoCardless to process recurring payments. At the midpoint of guidance, revenue is expected to grow by a relatively modest 6%.
Zoom's blowout results are encouraging tech investors, who are optimistic that enterprise IT spending is proving to be resilient despite macroeconomic uncertainty related to the coronavirus. Even if many of its peers aren't expected to post astronomical triple-digit growth like Zoom did, the market is hoping that enterprise software companies can similarly report better-than-expected results.