Why Zoom Video Communications Inc (NASDAQ: ZM) stock is grabbing spotlight

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Zoom Video Communications Inc (NASDAQ: ZM) stock surged over 7% on March 6th, 2020 (Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 19. Zoom has reported net income of $15.3 million in the fourth quarter, compared to net income of $1.2 million, in the year-ago fourth quarter. The company has generated net cash provided by operating activities of $36.6 million for the quarter, compared to $16.0 million in the fourth quarter of fiscal year 2019. Free cash flow has increased to $26.6 million for the quarter, compared to $5.7 million in the fourth quarter of fiscal year 2019. As a result, the company’s total cash, cash equivalents, and marketable securities at the end of January, 2020 stood at $855.2 million.

ZM in the fourth quarter of FY 19 has reported the adjusted earnings per share of 5 cents, beating the analysts’ estimates for the adjusted loss per share of 1 cents, according to analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 78 percent to $188.3 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $176.5 million.

For the first-quarter, the company expects revenue to be in the range of $199 million and $201 million, exceeding FactSet’s projection of $185.6 million. For fiscal 2021, Zoom expects revenue to be in the range of $905 million and $915 million, topping the $869.5 million forecast by FactSet.

Meanwhile, ZM has recently announced general availability of its Zoom Phone cloud phone service in 11 additional countries, which means there is total 17 countries and one territory now, and Beta Service in 24 new countries and one territory. Zoom Phone is now supporting local phone numbers and PSTN access with new Metered and Unlimited Calling Plans in 11 countries. This expanded geographic coverage will allow Zoom customers all over the world to migrate away from their in-country legacy phone systems to consolidate business communications into Zoom’s all-in-one, video-first unified communications platform.  Zoom Phone was launched in the United States and Canada in January 2019, and Zoom had rapidly expanded service to Australia, United Kingdom, Ireland, New Zealand, and Puerto Rico. Zoom customers can now access to multilingual prompts in German, Danish, Japanese, Korean, Russian, Chinese Mandarin (simplified) and Chinese Mandarin (traditional) apart from existing support for American English, British English, Canadian, French, and Spanish.

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