Zoom Video (NASDAQ:ZM) shares are up nearly 12% in the early session today after the communications platform delivered robust fourth-quarter numbers and announced a share repurchase program worth $1.5 billion. In Q4, revenue increased by 2.7% year-over-year to $1.15 billion, outpacing estimates by $18 million. Similarly, EPS of $1.42 surpassed expectations by $0.27.
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During the quarter, Zoom’s Enterprise revenue increased by 4.9% to $667.3 million. Its Online revenue, on the other hand, declined marginally by 0.5% to $479.2 million. At the end of Q4, Zoom had 220,400 enterprise customers, a year-over-year increase of 3.5%.
Importantly, its operating cash flow soared by 66% to $351.2 million. The company had a total cash pile of $7 billion at the end of January 2024. For Fiscal Year 2025, Zoom expects an EPS of $4.85 to $4.88 on revenue of $4,600 million. For the upcoming quarter, the company anticipates revenue of $1,125 million. EPS for the quarter is seen landing in the range of $1.18 to $1.20.
Is ZM a Good Investment?
Today’s price gains come after a nearly 14% decline in Zoom’s share price over the past year. Overall, the Street has a Hold consensus rating on Zoom Video alongside an average price target of $76.25. However, analysts’ views on the stock could see a revision following its earnings report.
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