Shares in Zoom Video Communications Inc. rose in late trading today after the online communications company surprised with revenue and earnings beats in its most recent quarter.

For its fourth quarter that ended Jan. 31, Zoom reported adjusted earnings per share of $1.42, up from $1.22 in the same quarter of last year, on revenue of $1.15 billion, up 2% year-over-year. Analysts had expected adjusted earnings per share of $1.15 on revenue of $1.15 billion.

For Zoom’s full fiscal year 2024, the company saw adjusted earnings per share of $5.21, up from $4.37 the fiscal year prior, on revenue of $4.5 billion, up 3% year-over-year.

Zoom’s solid growth over the year was driven by customer acquisition, with the company reporting it had about 220,400 enterprise customers as of the end of January, up 3.5% year over year. The trailing-12-month net dollar expansion rate for enterprise customers was 101%.

The company’s customers are spending more as well, with 3,810 customers contributing more than $100,000 in revenue in the trailing 12 months, up 9.8% from the same quarter of the previous year. Online average monthly churn, the percentage of customers that discontinued their service or subscription, was 3% in the fourth quarter, down 40 basis points from the same quarter last fiscal year.

Online monthly recurring revenue generated from customers’ subscriptions with a continual term of service of at least 16 months was 74.2%, up 220 basis points from a year ago. Put more simply, around three-quarters of Zoom customers are sticking around for at least 16 months.

“In FY24, we unveiled Zoom AI Companion, our generative AI digital assistant, aimed at boosting productivity, enhancing team effectiveness, and fostering skill development across the Zoom platform,” Eric S. Yuan, founder and chief executive officer of Zoom, said in the company’s earnings release. “We’re committed to democratizing AI accessibility, offering it to all our customers regardless of business size, included at no extra charge with a paid license.”

For its fiscal 2025 first quarter, Zoom said it expects adjusted earnings per share of $1.18 to $1.20 on revenue of $1.125 billion. Analysts were expecting $1.13 and $1.13 billion. For the full year, the company expects adjusted earnings per share of $4.85 to $4.88 on revenue of $4.6 billion versus an expected $4.71 and $4.65 billion.

Image: Zoom