Video chat firm Zoom has reported a five per cent year-on-year revenue increase in its third quarter.
The increase was due to a 20 per cent spike in enterprise revenue and the vendor claims it came from an increase in its big-ticket clients.
The number of customers contributing more than $100,000 in the preceding 12 months increased by a third.
With approximately 209,300 enterprise customers, a 14 per cent year-on-year increase, and a trailing 12-month net dollar expansion rate of 117 per cent, Zoom continues to fortify its market position.
The company reported 3,286 customers contributing more than $100,000 in trailing 12-month revenue, marking a 31 per cent year-on-year rise.
As a result of its financial performance above analyst expectations, the California-based vendor has raised its financial outlook for the fourth quarter.
The vendor anticipates total revenue between $1.0995 and $1.105 billion, with full fiscal year 2023 revenue projected to range from $4.4 -$4.3 billion.
CEO Eric Yuan said that the third quarter came ahead of guidance as the company bolstered Zoom’s all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion and continued evolving its customer and employee engagement solutions.
“We are also pleased with our Online business, where we drove higher retention and saw usage of our new AI capabilities, enhancing the value of our platform,” he said.
