Zoom boom carries over into 2021
Proving comprehensively that its success looks to be more enduring and not under threat at all as some employees head back to the office, Zoom Video Communications has kicked off its current fiscal year with a very strong first quarter.
For the company’s first quarter in its 2022 financial year ending 30 April 2021, Zoom posted total revenue of $956.2m, up 191% year on year. Showing clearly just how vastly more profitable the company has grown to be over the last year, GAAP income from operations for the first quarter of FY22 was $226.3m, up from $23.4m in the first quarter of the previous o fiscal year 2021.
After adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, and litigation settlements, net, non-GAAP income from operations for the first quarter was $400.9m, up from $54.6m in the first quarter of fiscal year 2021. For the first quarter, GAAP operating margin was 23.7% and non-GAAP operating margin was 41.9%. GAAP net income for the first quarter was $227.4m, compared with $27m first quarter of fiscal year 2021.
Driving the massive surge in revenues was as commensurately massive increase in customers over the past year. The company revealed its number of enterprise customers with more than 10 employees reached over 497,000, which is an 87% increase on the same time last year.
Up to 2,000 customers were contributing more than $100,000 in trailing 12 months revenue, up approximately 160% from the same quarter in the last fiscal year. The company also posted a trailing 12-month net dollar expansion rate in customers with more than 10 employees above 130% for the 12th consecutive quarter.
Not surprisingly, Zoom Video Communications CEO, Eric S. Yuan enthused about the successful first quarter results, noting that the firm’s “steadfast” commitment to empowering customers to work and learn from anywhere with its “expansive, innovative, and frictionless” video communications platform continued to drive results.
“With this solid start, we are pleased to raise our total guidance range to $3.975bn to $3.99bn for the full fiscal year,” he said. “Work is no longer a place, it’s a space where Zoom serves to empower your teams to connect and bring their best ideas to life. We are energised to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections.”
Yuan added that during the quarter the company had opened its technology portfolio to developers through its SDK and was allowing businesses to expand their reach through the launch of Zoom Events.
Due to become available this summer, Zoom Events is described as an all-in-one platform with the power to produce interactive and “engaging” virtual experiences. The developers say it combines the reliability and scalability of Zoom Meetings, Chat and Video Webinars in one package for event organisers, with the ability to produce ticketed, live events for internal or external audiences of any size.
Going forward, providing guidance for its second quarter of fiscal 2022 and its full fiscal year 2022, Zoom expects second quarter total revenue to be between $985m and $990m and non-GAAP income from operations is expected to be between $355m and $360m. Total revenue for the full fiscal year 2022 is projected to be between $3.975bn and $3.99bn and non-GAAP income from operations is expected to be between $1.425bn and $1.44bn.
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