It looks like the end of COVID lock-downs does not mean an end for video-conferencing outfit Zoom.
According to its latest results Zoom’s three-month period ended 30 April 2022 saw the core conferencing solution complemented with the launch of Zoom Contact Center, Zoom Whiteboard and Zoom IQ for Sales, a conversation intelligence service for sales professionals, as well as Zoom Events and Webinar functionalities such as Backstage and Webinar session branding.
These offerings are designed to put engagement at the centre of the experience and transform the way users work, connect and collaborate. The company said the products demonstrated its focus on enhancing the customer experience and promoting hybrid work.
In the quarter, the company posted total revenue of $1.074 billion, up 12 per cent year on year, with GAAP income from operations of $187.1 million and non-GAAP income from operations of $399.6 million. GAAP operating margin was 17.4 percent and non-GAAP operating margin was 37.2 percent. Total cash, cash equivalents and marketable securities, excluding restricted cash, were $5.7 billion as of 30 April 2022.
Strong customer metrics formed the engine of the firm’s revenue increase, including acquiring new customers and expanding across existing customers. At the end of the first quarter of fiscal year 2023, Zoom had about 198,900 enterprise customers, up 24 percent from the same quarter last fiscal year. It also had a trailing 12-month net dollar expansion rate for enterprise customers of 123 percent and 2,916 customers contributed more than $100,000 in trailing 12-month revenue, up about 46 percent from the same quarter last fiscal year.
Zoom founder and CEO Eric S Yuan said the new launches would further expand the company’s market opportunity for future growth and expansion with customers.
“In Q1, we delivered revenue of over $1 billion driven by ongoing success in Enterprise, Zoom Rooms and Zoom Phone, which reached three million seats during the quarter”, he said.
“We maintained strong profitability and cash flow, including 17 percent in GAAP operating margin, approximately 37 percent non-GAAP operating margin, approximately 49 per ent operating cash flow margin, and over 46 percent adjusted free cash flow margin.”
Zoom expected total revenue to be between $1.115- $1.12 billion and non-GAAP income from operations to be between $360-$365 million. Non-GAAP diluted EPS is forecast to be between $0.90 and $0.92, with about 308 million non-GAAP weighted average shares outstanding.
For the full 2023 fiscal year, total revenue is now expected to be between $4.53-$4.55 billion.
