Zoom Video Communications Inc (NASDAQ:ZM) stock rose 5.69% (As on February 27, 11:32:04 AM UTC-4, Source: Google Finance) after the company reported quarterly sales and profit that topped analysts’ estimates, a sign that corporate customers are sticking with the software company. The company also announced a $1.5 billion share buyback, which follows a $1 billion authorization started in 2022 that expired this month. Contact center licenses about tripled over the last year, and 95 phone customers had more than 10,000 active users, Zoom said in an earnings presentation. About half a million accounts enabled Zoom’s AI free companion. Enterprise revenue increased 4.9% to $667.3 million in the period ended January 31. Zoom said it had 2,20,400 corporate customers at the end of the quarter, with 3,810 contributing more than $1,00,000 in trailing 12-month revenue. Online sales, generally from casual consumers and small business, decreased 0.5% to $479.2 million. Zoom, on average, lost 3% of those customers each month in the quarter, matching its metric for the previous period, which was the slowest rate of churn the company had ever reported.

ZM in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.42, beating the analysts’ estimates for the adjusted earnings per share of $1.15, according to data compiled by Bloomberg. The company had reported the adjusted revenue growth of 2.6 percent to $1.15 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $1.13 billion. The non-GAAP income from operations for the fourth quarter was $443.7 million, compared to non-GAAP income from operations of $404.8 million in the fourth quarter of fiscal year 2023. For the fourth quarter, the non-GAAP operating margin was 38.7%. Net cash provided by operating activities was $351.2 million for the fourth quarter, compared to $211.6 million in the fourth quarter of fiscal year 2023, up 66.0% year over year. Free cash flow, which is net cash provided by operating activities less purchases of property and equipment, was $332.7 million, compared to $183.3 million in the fourth quarter of fiscal year 2023, up 81.5% year over year. Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of January 31, 2024 was $7.0 billion.

Zoom projected revenue of about $4.6 billion in the fiscal year ending in January 2025. Analysts, on average, estimated $4.66 billion. Profit, excluding some items, will be $4.85 to $4.88 a share, compared with the average projection of $4.72.