Zoom Posts Higher 1Q Profit, Sales Amid Macroeconomic Uncertainty

Dow Jones
May 22, 2025

By Connor Hart

Zoom Communications logged higher profit and revenue in the first quarter, boosted by customers leaning on the company to increase efficiencies and improve experiences.

The video-conferencing platform posted a profit of $254.6 million, or 81 cents a share, for its three months ended April 30, compared with $216.3 million, or 69 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings came in at $1.43, ahead of the $1.31 that analysts polled by FactSet expected.

Revenue rose 2.9% to $1.17 billion, in line with analyst models.

"In an uncertain macro-economic environment, customers are turning to Zoom to drive efficiency, improve customer and employee experiences, and future-proof their businesses," Chief Executive Eric Yuan said. He noted that new product launches also contributed to growth.

For its second quarter, Zoom guided for adjusted per-share earnings of $1.36 to $1.37 on revenue of $1.195 billion to $1.2 billion. Analysts are looking for adjusted earnings of $1.35 a share on sales of $1.19 billion.

For its fiscal 2026, the company now expects adjusted per-share earnings of $5.56 to $5.59, up from a prior outlook for $5.34 to $5.37. It forecast sales of $4.8 billion to $4.81 billion, compared with a previous view of $4.79 billion to $4.8 billion. Wall Street projected adjusted earnings of $5.39 a share, as well as revenue of $4.79 billion.

Shares rise 0.7%, to $82.84, in after-hours trading.

Write to Connor Hart at connor.hart@wsj.com

 

(END) Dow Jones Newswires

May 21, 2025 16:34 ET (20:34 GMT)

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