Zoom Rockets Higher After Smashing Expectations, Guides To Another Blowout Quarter Zoom Video returned to its steamrolling ways, trading as if the pandemic will never end and people will work via Zoom call in perpetuity, when it reported Q4 earnings that smashed expectations, and projected Q1 revenue and EPS that blew away analyst estimates. The company reported Q4 EPS of $1.22, almost 10x higher compared to a year ago, and more than 50% higher the consensus estimate of $0.79 on revenues of $882 million, also high above analyst estimates of $812MM. Zoom also reported: Cost of revenue $267.3 million, estimate $259.5 million FCF of $377.9 million, beating estimates of $202.2 million Cash and cash equivalents $2.24 billion, nearly 10x higher than the $283.1MM a year ago, and more than double the consensus estimate of $1.05 billion The company's guidance was even more impressive: ZM now expects Q1 revenue between $900.0MM and $905.0MM, blowing out sellside estimates of $829.5 million, if not quite above the high end of the $727.0 million to $948.0 million range. The company also expects adjusted EPS 95c to 97c, versus an estimate of 72c, and this time coming well above the higher end of the analyst range of 49c to 93c. Commenting on the results, Eric S. Yuan, Founder and CEO, said "as we enter FY2022, we believe we are well positioned for strong growth with our innovative video communications platform." The company, which has 11 buys, 15 holds, 3 sells (ratings which will be revised sharply higher tonight), initially dipped on what appeared to be another priced to perfection report, only to rip higher, and was last seen trading more than 10% higher than the Monday's closing price of $409.66, most recently at $450. Tyler Durden Mon, 03/01/2021 - 16:38