Zoom customers increase 18% year-on-year

Remote communication platforms have become essential in working life. While tools like Slack, Zoom, and Microsoft Teams were necessitated by the COVID-19 pandemic, the popularity of hybrid work has continued the adoption of these products.

Zoom has released its financial results for the second quarter (Q2) of the fiscal year, and business appears to be booming.

The company has reported total revenue of $1.09 billion in this quarter which is an 8% increase from last year.

This growing revenue has been supported by new customers with the number of clients contributing more than $100,000 up 37% year-on-year. The company managed to attract 204,100 enterprise customers in this quarter.

Looking ahead, Zoom has offered what shareholders can expect from 2023. The company anticipates that the total revenue is expected to be between $4.385 billion and $4.395 billion.

In addition, full fiscal year non-GAAP (generally accepted accounting principles) income from operations is expected to be between $1.440 billion and $1.450 billion.

Comments on Zoom’s progress

Zoom founder and CEO, Eric Yuan, has discussed the results in a press statement: “In Q2, we continued to gain traction as the platform of choice for enterprises looking to deliver flexible, productive solutions for collaboration and customer engagement.

“Businesses are drawn to the Zoom platform because of our innovation and modern architecture.

“Our recently launched Zoom Contact Center and Zoom IQ for Sales products saw some great early wins while Zoom Phone delivered milestone results, hitting a record number of licenses sold in the quarter and reaching nearly 4 million seats, up more than 100% year over year.”

Kelly Steckelberg, CFO at the company, added: “In Q2, we delivered our fifth straight quarter with revenue of over one billion dollars.

“While we saw continued momentum with our enterprise customers and our non-GAAP operating income came in meaningfully higher than our outlook, our revenue was impacted by the strengthening of the US dollar, performance of the online business, and to a lesser extent sales weighted to the backend of the quarter.

“Consequently, we are now expecting to deliver fiscal year 2023 revenue in the range of $4.385 billion to $4.395 billion. We remain focused on operational discipline, and continue to expect non-GAAP operating margin of approximately 33%.”

Evidently, remote communication platforms are here to stay.

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