Zoom (ZM) earnings Q1 2022

Zoom Video Communications Inc. founder and CEO Eric Yuan at the company’s IPO at Nasdaq MarketSite in New York, April 18, 2019.

Victor J. Blue | Bloomberg | Getty Images

Zoom reported better-than-expected first-quarter results Tuesday, with sales growth of 191%. The shares rose 4% in extended trading after initially falling as much as 5% as the company showed signs of a looming slowdown.

Here’s how the company did:

  • Earnings: $1.32 per share, adjusted, vs. 99 cents per share as expected by analysts, according to Refinitiv.
  • Revenue: $956.2 million, vs. $906.0 million as expected by analysts, according to Refinitiv.

Revenue in the quarter, which ended on April 30, jumped from $328.2 million a year earlier, according to a statement. In the previous quarter revenue rose 369% as Zoom lapped the onset of the coronavirus pandemic in the U.S., which brought in millions of new users.

The company’s gross margin widened to 73.9% from 69.4% in the previous quarter, primarily because of optimization of public-cloud resources, the company said. Zoom said its Zoom Phone product, including cloud-based phone services along with video calls and other capabilities, had 1.5 million seats at the end of April, up from 1 million in January.

Zoom said it expects $1.14 to $1.15 in adjusted earnings per share on $985 million to $990 million in revenue in the fiscal second quarter. Analysts polled by Refinitiv had expected adjusted earnings of 94 cents per share and $931.8 million in revenue.

For the full 2022 fiscal year, Zoom now sees $4.56 to $4.61 in adjusted earnings per share and $3.98 billion to $3.99 billion in revenue. Analysts polled by Refinitiv had been looking for $3.76 in adjusted earnings per share and $3.8 billion in revenue.

Notwithstanding the after-hours move, shares of Zoom have fallen about 3% since the start of 2021, while the S&P 500 index is up nearly 12% over the same period.

During the quarter, Zoom announced enhancements to its Zoom Rooms offering for meeting locations, as well as a $100 million venture-capital fund.

Executives will discuss the results with analysts on a Zoom call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

WATCH: Zoom COO Aparna Bawa on the hybrid working environment

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