On Monday, after markets closed, California-based Zoom Video Communications "ZM" reported the fourth-quarter results. It smashed analyst expectations for both top-line revenue and bottom-line profitability.
The video-conferencing platform’s popularity has skyrocketed since the start of the pandemic. The still loss-making company is trying to convert the surge in demand to revenues and boost its margins by adding additional services to keep up with the competition.
So far, that strategy has been working, as customers with more than 10 employees have grown 470% YoY contributing to a revenue jump of 369%.
On Monday, going into earnings, shares of Zoom surged 12% as investors were buying into expectations for an upcoming solid result. However, on Tuesday it declined 15% from the highs it opened the session at.