Zoom stock price is up about 10% after hours today immediately following their Q4 earnings release. The company and their performance this quarter and for the year did not disappoint investors.
Zoom is “printing” money, figuratively, with fourth quarter operating cash flow of $400 million, up 993% y/y; and full fiscal year operating cash flow of $1.5 billion, up 869% y/y.
Some other first blush KPI’s (Key performance indicators):
- Total revenue for the quarter was $882.5 million, up 369% year-over-year.
- Approximately 467,100 customers with more than 10 employees, up approximately 470% from the same quarter last fiscal year.
- 1,644 customers contributing more than $100,000 TTM (Trailing 12-month) revenue, up approximately 156% from the same quarter last fiscal year.
- Net dollar expansion rate in customers with more than 10 employees was above 130% for the 11th consecutive quarter.
- $4.2B in cash & equivalents
- $1,751B in RPO (Remaining Performance Obligations) is insane!
- GAAP income up 2,327% !! (I had to read this one twice!!)
- Continued growth and traction with international growth, Zoom Phone, and selling into larger enterprise customers
Zoom’s guidance gave no indication of slowing down, indicating they are well positioned for continued growth next year…though also did not provide much explanation in the release, which I will look for in the call. I could not otherwise find much to nitpick and was pleasantly surprised…well…not to be surprised!
Zoom’s earnings call is at 2pm today if you can jump on and listen to their CEO, Eric Yuan, and how they did in his own words.
I’m comfortable with my 6%+ portfolio position in ZM (which is up and considerably larger after hours as the stock jumps higher) and will maintain it. I had also placed a few targeted options bets on Zoom for this Q4 earnings call (long call options) that expire this Friday and which allowed me to leverage my gains (or losses) if it opens up (or down) a lot tomorrow, as I expect it will. Cheers! -Poleeko!
