Zoom Video Communications Inc (NASDAQ:ZM) stock rose 1.01% (As on May 21, 11:23:19 AM UTC-4, Source: Google Finance) after the company reported a stronger-than-expected performance for the first quarter, surpassing analyst estimates for both earnings per share (EPS) and revenue. However, the guidance for the second quarter and full fiscal year 2025 showed a cautious outlook. The company also reported customer growth, with 3,883 customers contributing more than $100,000 in trailing 12 months revenue, an increase of 8.5% from the same quarter last fiscal year, versus Visible Alpha Analyst Consensus of 4,052. Online average monthly churn of 3.2% for the first quarter, up 10 bps from the same quarter last fiscal year. The non-GAAP income from operations for the first quarter was $456.6 million, compared to non-GAAP income from operations of $422.3 million in the first quarter of fiscal year 2024. For the first quarter, the non-GAAP operating margin was 40.0%. Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of April 30, 2024 was $7.4 billion. Net cash provided by operating activities was $588.2 million for the first quarter, compared to $418.5 million in the first quarter of fiscal year 2024, up 40.6% year over year. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $569.7 million, compared to $396.7 million in the first quarter of fiscal year 2024, up 43.6% year over year.

ZM in the first quarter of FY 25 has reported the adjusted earnings per share of $1.35, beating the analysts’ estimates for the adjusted earnings per share of $1.19. The company had reported the adjusted revenue growth of 3.2 percent to $1.14 billion in the first quarter of FY 25, beating the analysts’ estimates for revenue of $1.13 billion.  Enterprise revenue was $665.7 million, up 5.3% year over year, and Online revenue was $475.5 million, flat year over year.

Zoom anticipates Q2 adjusted EPS to be between $1.20 and $1.21, slightly below the analyst consensus of $1.23. The expected Q2 revenue range of $1.145 to $1.15 billion is also at the lower end of the analyst estimate of $1.15 billion.

For the full fiscal year 2025, Zoom forecasts an adjusted EPS of $4.99 to $5.02, which is above the consensus of $4.91. The revenue guidance for FY2025 is set at $4.61 to $4.62 billion, aligning closely with the consensus of $4.61 billion.