Shares in videoconferencing firm Zoom Video Communications Inc. dropped in after-hours trading today despite the company beating analysts’ expectations and providing higher-than-expected guidance thanks to the spread of the coronavirus.

Zoom reported a net profit of $15.3 million, or 5 cents a share, in its fourth quarter, up from $1.2 million or 1 cent a share a year ago. Revenue jumped 78%, to $188.3 million.

Total revenue for the fiscal year came in at $622.7 million, up 88% year-over-year, with an adjusted profit of 35 cents per share.

Looking forward, Zoom said that it expected its revenue to be $199 million to $201 million in the first quarter with an adjusted profit of $25 million to $27 million. For the full fiscal year 2021, the company predicted total revenue of $905 million to $915 million and an adjusted profit of $110 million to $120 million.

According to CNBC, all of those figures came in above analyst expectations, but in a market dominated by coronavirus fears, apparently it wasn’t enough.

Zoom in particular, among many unicorn startups that have gone public, is well-placed to benefit from the panic as the virus continues to spread across the globe. Twitter Inc. was the first major U.S. tech company to encourage employees to work from home to avoid coronavirus contagion and was quickly followed by Microsoft Corp. Zoom’s software allows employers to connect with employees as they stay at home in an attempt to avoid catching a virus that is arguably the biggest virus story since the Black Death.

Coronavirus concerns were front and center of Zoom’s investor call. Chief Executive Officer Eric Yuan said the virus had resulted in record usage. Zoom itself is also asking its employees to work from home.

“I am happy to report that all of our employees in the affected areas are healthy,” Yuan said on the investor call. “Given the recent emergence and growing number of coronavirus cases in the U.S., we have directed our HQ employees to work from home, unless there is a business-critical need for them to be in the office.”

Zoom shares were down almost 7% in after-hours trading, to about $109 a share. Investors won’t be panicked, however, given the company floated at $36 per share and closed its first day of trading at $65 per share.

Photo: Zoom