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Zoom Market Cap Tops $100B, Shares Rally By 41% in One Day

Zoom Market Cap Tops $100B, Shares Rally By 41% in One Day

According to the research data analyzed and published, Zoom added $37.4 billion to its market cap on September 1, 2020, to cross the $100 billion mark for the first time. While its market cap surged to $129.1 billion, shares rallied 40.8% on the same day.

The rally, which came following the release of its earnings report for Q2 FY21, was the strongest on record since it went public in April 2019.

Zoom Stock Price Rallies Over 500% YTD as Corporate Clients Increase By 458%

During the quarter, the videoconferencing company reported $663.5 million in sales. It was at least 4.5 times the $146 million sales it made in Q2 of the previous year. In fact, it was more than the sales reported for all of 2019, which was at $622.3 million.

Among NASDAQ 100 companies, Zoom had the second-largest surge in sales during the period. According to FactSet, the expected adjusted EPS was 45 cents from $500.3 million in sales. The actual adjusted EPS was 92 cents, up from 8 cents in the previous year’s quarter. Revenue increased by 355% while free cash flow went from $17 million in Q2 FY20 to $373.4 million in Q2 FY21. The stock price also rallied over 500% year-to-date (YTD) as of September 1, 2020.

Over the past year, it had an increase of 458% year-on-year (YoY) in terms of corporate clients, numbering 370,200. They consisted of companies with 10 employees or more and are the company’s cash cow. Executives raised the revenue outlook for 2020 by 281% to 284%, to $2.37 billion to $2.39 billion.

Fastly was another beneficiary of the work-from-home trend. At the end of June 2020, it had surged by 222% from a mid-February peak ahead of Zoom’s 159%. During Q2 2020, its revenue surged by 62% to $75 million. Cloudflare also reported an upsurge of 48% during the same period while DocuSign grew by 45%.