Zoom Video Communications, Inc. shares are expected to open Wednesday on the Nasdaq composite up 2.22% on their Tuesday close.
The stock was last traded at $327.72 a share in regular hours - or off $3.81 or 1.15% - ahead of the company's earnings for fiscal first quarter 2022.
Zoom said its first quarter 2022 earnings exceeded analysts' estimates on both the top and bottom lines with revenues rising 191% year over year.
During the pandemic, the video conferencing company enjoyed strong growth and market participants are keeping an eye on its performance in the coming quarters as coronavirus cases decline and people start meeting more face to face.
According to a statement, revenue in the quarter, which concluded April 30, increased to $956.2 million from $328.2 million the previous year - an increase of 2.9 times. Zoom benefited from the onset of the coronavirus pandemic in the U.S. - which brought in millions of new users.
The company's gross margin increased to 73.9% from 69.4% in the previous quarter, owing mostly to public-cloud resource optimization, according to the company. Zoom said its Zoom Phone product, which includes cloud-based phone services as well as video calls and other features, had 1.5 million users at the end of April from 1 million in January.
Zoom predicted adjusted earnings per share of $1.14 to $1.15 per share on revenue of $985 million to $990 million in the fiscal second quarter. Analysts polled by Refinitiv had expected adjusted earnings of 94 cents per share and $931.8 million in revenue.
Zoom chief executive Eric Yuan said the company would continue to play a crucial role in an evolving environment that will allow workers to split their time more evenly between home and work.
"Zoom is here to help each customer calibrate their future working model in their own way," Yuan told analysts during an earnings call hosted on the company's service.
The questions surrounding Zoom's future in a post-pandemic economy have already caused its stock price to fall by more than 40% from a peak of more than $589 set in October. Zoom's current market value of roughly $100 billion is more than triple what it was before the World Health Organization proclaimed an international pandemic in March 2020.
Notwithstanding the after-hours move, Zoom shares have fallen approximately 3% since the beginning of 2021, while the S&P 500 index has gained over 12% in the same time frame.
During the quarter, Zoom announced updates to its Zoom Rooms product for meeting locations, as well as a $100 million venture-capital fund.
