Zoom’s stock surges 41% after earnings beat, adding over $37 billion in market cap

Zoom shares soared 41% on Tuesday, lifting the video-conferencing software company’s market cap to $129 billion after revenue and earnings blew past analysts’ estimates.

The rally added $37 billion of market value to Zoom, which went public in April 2019 and was worth about $16 billion after its initial day of trading. The company has been perhaps the biggest corporate beneficiary of the coronavirus pandemic, as employers across the globe have turned to the video chat technology to stay connected with staffers, customers and partners. 

Revenue in the period surged 355% to $663.5 million, topping the $500.5 million average estimate of analysts, according to Refinitiv. Adjusted earnings per share of 92 cents more than doubled analysts’ estimates for profit or 45 cents a share. Zoom’s net income for the period was more than triple its profit for the last six quarters combined.

The number of customers producing $100,000 or more in annual revenue for Zoom more than doubled from a year earlier to 988. CEO Eric Yuan highlighted Exxon, Activision and ServiceNow on the earnings call.

“With the pandemic persisting, we are committed to work hard and are humbled by our role of enabling communications worldwide during this challenging time,” Yuan said.

Zoom also raised its guidance for the full 2021 fiscal year. Revenue will be $2.37 billion to $2.39 billion, implying 282% growth in the middle of the range, topping the average analyst estimate for sales of $1.81 billion.

Zoom is now among the 20 most valuable U.S. tech companies, with a market cap higher than IBM and more than twice as large as that of VMware. 

— CNBC’s Jordan Novet contributed to this report

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