Shares of video conferencing company Zoom went up 7.4% in after hours trading after the company posted full-year revenue growth and released an optimistic annual profit forecast.
Zoom’s total revenue for the year ending January 31, 2023, rose 7% to $4.4 billion compared to the previous year. Adjusted for currency, revenue was up 9% year-over-year after adjusting for foreign currency impact.
The company saw a 24% increase year-over-year to $2.4 billion in enterprise revenue. However, online revenue dropped 8% to $2 billion. On a generally accepted accounting principles (GAAP) basis, income from operations for the fiscal year fell to $245.4 million from $1.1 billion the previous year.
On a non-GAAP basis, Zoom earned $1.5 billion or $5.07 per share for the fiscal year. GAAP net income attributable to common stockholders for the fiscal year was $103.7 million, or $0.34 per share.
In the fourth quarter, Zoom recorded a 4% rise in revenue to $1.1 billion compared to the same period a year ago. On a non-GAAP basis, the net income per share was $1.22. In the fourth quarter of the fiscal year 2022, non-GAAP net income was $393.6 million, or $1.29 per share.
“While the macroeconomic situation continues to negatively impact our overall growth, we have maintained a healthy balance sheet and operating cash flow generation of approximately $1.29 billion,” Zoom Founder and CEO Eric S. Yuan said in a statement.
Yuan has a real-time net worth of $3.6 billion as of February 28, according to Forbes estimates.
The company said it expects total revenue for the first quarter to be between $1.080 billion and $1.085 billion, or in constant currency, between $1.970 billion and $1.102 billion.
On a non-GAAP basis, income from operations is seen to be between $374 million and $379 million. Non-GAAP diluted earnings per share for the first quarter are expected to be between $0.96 and $0.98 with approximately 304 million non-GAAP weighted average shares outstanding.
For the upcoming fiscal year, Zoom said it expects total revenue of between $4.44 billion and $4.46 billion and revenue in constant currency is expected to be between $4.46 billion and $4.48 billion.
Non-GAAP income from operations is forecast to be between $1.606 billion and $1.626 billion. Non-GAAP diluted earnings per share for the full fiscal year is seen to be between $4.11 and $4.18 with approximately 309 million non-GAAP weighted average shares outstanding
