Zoom reported an adjusted EPS of USD 1.22 (up 8x from USD 0.15 a year ago) for Q4 FY2021, significantly exceeding analyst consensus expectations of USD 0.79. Zoom’s revenue growth was impressive as it increased by 369% YoY to USD 882 million, also beating analyst estimates of USD 812 million. This is especially significant given that it follows 367% revenue growth in the previous quarter.

Zoom provided revenue guidance for the fiscal year 2022 in the range of USD 3.76 and USD 3.78 billion, implying around 42% YoY growth. Adjusted EPS guidance was also raised between USD 3.59 and USD 3.65, implying EPS growth in the range of 8% and 9% in FY2022.

The Q4 revenue growth was supported by a 470% YoY (about 8% QoQ) increase in “customers with more than 10 employees” to 467,100. Active customers (trailing 12 month revenue greater than USD 100,000) increased to around 1,650, reflecting a 156% increase YoY (about 28% QoQ). 

Zoom’s adjusted gross margin reduced by about 13 percentage points (pps) to 71.3% in Q4 FY2021 compared to the previous year. However, this was due to a higher number of free users and increased utilization of public cloud services due to the Covid-19 pandemic. Adjusted gross margins increased by 3 pps compared to the previous quarter. Adjusted operating expenses reduced to 30% of revenue in Q4, which led to  EBIT of USD 361 million (41% EBIT margin) compared to EBIT of USD 38 million (20% EBIT margin) in the previous year. 

Zoom’s stock price rose around 11% in after-hours trading.