The videoconference publisher Zoom Communications presented the results of the financial year for the year 2020. They were up significantly more than expected, particularly in the fourth quarter. The American group achieved very good performances during this quarter. Over the whole of last year, it has increased sales thanks to the restraint measures that have increased demand for its services. In addition, the company posted solid targets for 2021.
Zoom Communications activity improved strongly in the fourth quarter (ending January 2020). For this quarter alone, the group generated an estimated net profit of $260.4 million, or 87 cents per share. For the same period last year (2019), it was $15.31 million. This is equivalent to 5 cents per share.
Adjusted earnings per share for the group were $1.22. This is 43 cents better than the Bloomberg consensus. The share has multiplied by about 5 times in 2020. On the other hand, sales rose by 369% to $882.50 million.
This sharp increase was driven by strong demand for the company's services in Q4 due to the containment measures introduced to limit the pandemic. It should be noted that this revenue is well above market expectations, which were aimed at 811 million euros.
811 million. In addition, over the whole of last year, the videoconferencing specialist recorded a jump in sales. They increased by 3.26% to $2.65 billion.
After ending last year's fiscal year on solid results, Zoom Communications plans to continue this momentum in 2021. In this context, the company has announced ambitious prospects.
For 2021, the group anticipates revenues in the range of $3.76 to $3.78 billion. In the first quarter, they are expected to be between 900 and 905 million euros. 905 million. This year, the company estimates that revenues should therefore increase by 43%. This rate is higher than the market's expectations, which are expecting an average growth of 37%.
For adjusted earnings per share, the group expects to reach between $3.59 and $3.65 respectively. The market, on the other hand, is aiming for $2.97.
Disclaimer: These figures were provided by the group and are only forecasts.
Created in 2011 and based in California, Zoom Communications is an American company specializing in teleconferencing services. The company offers a remote teleconferencing service combining several activities.
These include videoconferencing, chat, online meetings and collaboration via applications developed by the group. In addition, the group increased its reputation in 2020 by registering more customers due to the containment measures adopted in several countries to counter the Covid-19 pandemic.
In addition, Zoom Communications has more than 2,500 employees. The company is also present on the equity markets. It went public in April 2019.