Zoom Annual Net Profit Drops 13x Due To One-Time Expenses

Zoom Annual Net Profit Drops 13x Due To One-Time Expenses

Zoom: The American Zoom Video Communications Inc., which provides remote conferencing services, increased its revenue by 7% in the past financial year to $4.39 billion. Still, its net profit decreased 13 times – to $103.7 million due to one-time expenses.

Profit excluding one-time factors decreased to $4.37 from $5.07 a year earlier.

Zoom’s revenue for the fourth fiscal quarter that ended Jan. 31 was $1.12 billion, up from $1.07 billion a year earlier. The consensus forecast of experts polled by FactSet for this indicator was $1.1 billion.

In the same quarter, the company recorded a net loss of $104.1 million compared to a net profit of $490.5 million a year earlier. Analysts, on average, had predicted a loss of $32.9 million.

Earnings excluding one-off factors were $1.22 per share, with the average market forecast for this indicator at $0.81 per share.

As of the end of the fourth financial quarter, the number of Zoom client companies was about 213,000, up 12% from a year earlier.

According to Zoom’s forecast, its revenue in the first quarter of fiscal 2024 will be $1.08-1.085 billion at the end of the year – $4.435-4.455 billion. Adjusted earnings in the current quarter will be $0.96-0.98 per share, and at the end of the year – $4 11-4.18 per share, the company predicts.

Zoom shares rose 7.4% in Monday’s additional trading. Over the past 12 months, their value has fallen by 44%.