Zoom has achieved its first $1 billion revenue quarter but has warned that some parts of its business will begin to slow down.
For its quarter ending 31 July 2021, revenues grew by 54 percent year on year – hitting $1 billion for the first time in a single quarter.
The revenue growth was driven by new customer acquisition, Zoom claims. New customers accounted for around 74 percent of Zoom’s incremental revenue during the quarter, while existing customers accounted for 26 percent.
In addition, the video communications vendor saw a 131 percent uptick in the number of customers contributing more than $100,000 in trailing 12-month revenues, as well as a 36 percent jump in the number of customers with more than 10 employees.
Speaking to investors, Zoom CFO Kelly Steckelberg said that Zoom’s direct and channel businesses are growing at twice the rate of its online business.
Its EMEA operations were hit hardest by declines in Zoom’s online segment, which Steckelberg attributed to an increase in travel among users as COVID-19 restrictions are eased.
“Even though the pandemic seems to be far from over, we are happy that people are feeling more comfortable out and travelling, and that’s really where we’re seeing the slowdown If you go back to when we gave guidance at the beginning of the year, we had expected that [to happen] toward the end of the year, but it’s just happened a little bit more quickly than we expected.”
No kidding.
