Zoom’s Anthropic Stake Hits $1.3B and Q1 Revenue Climbs 5.5%, Guiding Higher
Zoom’s $51 million Anthropic stake has surged to nearly $1.3 billion, delivering over a $1 billion gain as Anthropic readies a $30 billion funding round valuing the AI startup at $900 billion. Zoom reported Q1 revenue of $1.24 billion (+5.5% YOY), raised full-year guidance and authorized a $1 billion buyback.
1. Significant Anthropic Investment Return
Zoom’s May 2023 $51 million investment in Anthropic has appreciated to nearly $1.3 billion, yielding more than a $1 billion gain for the company. Anthropic is now preparing to secure up to $30 billion in a new funding round that could value the startup at $900 billion, with lead investors committing $2 billion each.
2. Strong Q1 Financial Results
Zoom reported first-quarter revenue of $1.24 billion, a 5.5% year-over-year increase, and adjusted earnings of $1.55 per share versus $1.43 in the prior year. Management raised full-year guidance to $5.96–$6.00 adjusted EPS on revenues of $5.08–$5.09 billion, reflecting confidence in continued growth.
3. Capital Allocation and Market Response
The company authorized a new $1 billion share repurchase program to return capital to shareholders. In response to the earnings beat and Anthropic windfall, several brokerages lifted price targets, including increases from $92 to $105, $115 to $130 and $121 to $125.