The Zoom Is Zooming In, But This Way Of Health Care Is Even Better | Motley Fool

The stock market managed to post some gains to start the new week, although the major market indices ended well in their positions for the day. The Nasdaq Composite (^IXIC) led the way higher with more than half the percentage, but S&P 500 (^GSPC 0.31%) Same to you Dow Jones Industrial Average (^DJI 0.22%) have to settle for a smaller departure on Monday.


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Data source: Yahoo! Money.

After the closing bell, though, good financial results lifted some stocks. Specifically, my stock Video Communication Zoom (ZM -0.28%) especially experienced professionals as investors look for video conferencing professionals to bounce back. And an even bigger growth in the health technology company’s stock Progyny (PGNY 1.70%) many company awareness did not follow them carefully.

The show continues for Zoom

Shares of Zoom Video Communications rose 8% in after-hours trading on Monday. The pandemic-era telecommunications giant reported fiscal results for the quarter ended Jan. 31 that gave investors more confidence in its ability to grow.

The zoom numbers show strong growth, although not nearly as much as professional video communication has achieved in recent years. Total revenue was up 4% year-over-year to $1.12 billion, capping a year of 7% sales growth.

Adjusted income was 7% lower than last year’s levels at $367 million, but the decline in the number of shares limited the fall in adjusted earnings per share, which came in at $1.22. Full-year fiscal 2023 adjusted earnings of $4.37 per share were down about 14% from last year’s fiscal 2022 estimates.

Zoom has gained more strength in its business segment, which has proven important as everyday users are not loyal to the continuation of the service as different businesses and social spaces have reopened. Zoom served 213,000 business customers, up 12% from the previous 12 months, and these customers had a 115% dollar expansion rate.

Zoom has 3,471 customers who contribute at least $100,000 annually to its revenue, up 27% from the same period a year ago. Business segment revenue was up 18% for the quarter and 24% for the year, showing that Zoom’s overall strategy still makes sense.

Investors were similar to Zoom’s outlook for fiscal 2024, although he predicted revenue growth of only 1% and a fall in adjusted earnings to between $4.11 and $4.18 per share. With the stock rising from its peak, however, much of the decline has already been reflected in the stock price, and that may confirm optimism about Zoom’s long-term future.

Progyny looks healthy

Meanwhile, Progyny shares are up 14% in after-hours trading. The provider of fertility and family-based benefits solutions has seen significant growth in revenue in 2022, and investors like those gains and performance on its bottom line.

Progyny’s numbers are generally good. Revenue of $214 million was up 68% from prior levels. Although net income was down significantly, pre-tax earnings of $33 million were more than double what Progyny posted in the fourth quarter of 2021.

Both Progyny’s fertility benefit and pharmacy benefit services segments have shown impressive growth, and the number of clients has more than halved in the past 12 months as the company serves nearly 4.56 million till the end of 2022.

Progyny believes that the macroeconomic environment will continue to support its growth until 2023. For the full year, the company hopes to break the $1 billion mark in revenue, with earnings of $0.26 to $0.32 per share and a big jump in the pre-tax adjustment of labor. Side expansion is also good.

The past year has not been good for Progyny stock, but investors are hoping that the tide has turned for the company. Based on its recent results and outlook, it may give investors the results they have been looking for.

Dan Caplinger has a post on Zoom Video Communications. The Motley Fool has a post on and recommends Progyny and Zoom Video Communications. The Motley Fool has a disclosure policy.

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