The pandemic shook the working world to its very core, and many companies subsequently invested in technology that would connect remote workers.
As a result, we are living in the age of synchronous messaging services, and video calls. In fact, Zoom has had to double the size of its workforce to keep up with its overwhelming demand.
The company has now revealed its quarterly earnings for the fourth quarter (Q4), and it provides insight into how demand for video calling services is persisting in the world of hybrid working.
Zoom has seen its fiscal year in 2022 revenue reach over $4 billion, this is up a staggering 55% when compared to the previous year.
Additionally, the winter months have proved a success for Zoom, with revenue of $1 billion. which is up 21% year over year.
This impressive climb, despite some offices reopening, is connected to a larger strategy. Zoom is targeting enterprises.
The company now has 2,725 customers who are contributing more than $100,000 in trailing 12 months revenue, and this is a jump of approximately 66% from the same quarter last fiscal year.
Zoom now has approximately 191,000 enterprise customers, which marks a 35% increase over the previous fiscal year.
Of course, another factor that plays into the success of the company is the fact that many workers are choosing to remain flexible and work from home.
Zoom founder and CEO, Eric Yuan reflected on this uptick in custom: “In fiscal year 2022, we delivered strong results with total revenue of more than $4 billion growing 55% year-over-year along with increased profitability and operating cash flow growth as our global customer base continued to grow and find new use cases for our broadening communications platform,”
“Looking forward, we are addressing a large opportunity as we expect customers will continue to transform how they work and engage with their customers. It is apparent that businesses want a full communications platform that is integrated, secure, and easy to use.
Yuan added: “We are proud to lead the charge of the digital transformation for communications.
“To sustain and enhance our leadership position, in fiscal year 2023 we plan to build out our platform to further enrich the customer experience with new cloud-based technologies and expand our go-to-market motions, which we believe will enable us to drive future growth.”
It is unclear exactly what customer experience changes will occur within Zoom, but this last year saw the company focus on accessibility as it added auto-captions to its meetings, and it has also tested adverts on its free offering.
In a blog post, the company committed to changes in how it reports its success, it will no longer give metrics on customers with more than ten employees but will instead move them to the appendix to the investor deck that Zoom in its earnings report for 2023. Instead of this figure, the company will publish the metrics of customers contributing more than $100,000 in trailing 12 months revenue.
The future looks bright for Zoom as it attracts large customers, the main foreseeable challenge is people returning to the office and relying less on virtual meetings.