Zoom Shows Up With Receipts After Producing Highest Revenue Growth In 11 Quarters… (It’s Alive!)

"The reports of my death were greatly exaggerated." - Zoom's stock price, probably

Well, well, well… for the first time in years, Zoom doesn’t look like a pandemic relic. Instead, it’s looking like a company with an actual pulse. In short, shares of the “business up top, party on the bottom” ripped more than +11% after Zoom dropped second-quarter results that finally gave investors something to cheer about. Revenue rose nearly 5% to $1.22 billion, earnings per share hit $1.53 (versus $1.37 expected), and enterprise sales showed actual momentum. 

(Source: Giphy) 

For more context, enterprise revenue grew 7% to $730.7 million, while online revenue (the legacy subscriptions that kept yoga teachers employed in 2020) limped up just 1.4%. However, the real win… is that Zoom added nearly 9% more big spenders, now counting 4,274 customers who shell out over $100,000 a year. That’s the crowd Wall Street actually watches, because they decide whether Zoom is a durable enterprise platform or just a glorified FaceTime app.

(Source: Yahoo Finance) 

Additionally, the company raised its full-year EPS forecast to a range of $5.81 to $5.84 and bumped revenue guidance to $4.83 billion. The reason? Well, because CEO Eric Yuan is leaning hard into artificial intelligence, saying Zoom is “at the forefront” of the workplace AI shift. Translation: every product now gets an AI coat of paint… meeting summaries, productivity nudges, customer service tools, even Workvivo and the contact center play. Now honestly, investors don’t actually care whether employees use it; they care that Zoom can attach “AI” to revenue growth and margin expansion.

(Source: Imgflip) 

With that said, Zoom didn’t need to slap “AI” on their earnings just to get a twitch. How so? Because they showed up with actual receipts… reporting its highest year-over-year revenue growth in 11 quarters and expanded operating margins by nine percentage points. Naturally, traders saw this and collectively hit the YOLO button. 

However, for investors (who don’t act on emotions), it’s still worth understanding that one strong quarter doesn’t erase the pandemic hangover. The platform remains in identity rehab… a.k.a, too big to be written off, too small to dominate. The enterprise side is carrying it forward, AI gives it a narrative, and the raised outlook means management is confident it can at least maintain this rhythm.

(Source: Giphy) 

But, but, but…. even though the AI glow-up bought it some credibility on Wall Street… the company now has to prove it wasn’t just a one-quarter wonder. And only time will tell if Zoom continues walking the talk. Meaning, keep your eyes on Zoom and place your bets accordingly. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.