Zoom lands more large customers in Q3, beats market estimates
Zoom on Monday published its third quarter financial results, highlighting the fast pace at which it is expanding its large customer base. The company beat Q3 market expectations for the top and bottom line and gave a strong Q4 outlook.
Non-GAAP net income for the third quarter was $338.4 million, or $1.11 per share. Total revenue was $1.051 billion, up 35% year-over-year.
Analysts were expecting earnings of $1.09 per share on revenue of $1.02 billion.
Zoom reported a total of 2,507 customers contributing more than $100,000 each in trailing 12 months revenue, up approximately 94% from the same quarter last fiscal year. That's up from 2,278 customers at the end of Q2. These customers represented 22% of revenue in Q3, up from 18% in Q3 of last year.
The company reported 512,100 customers with more than 10 employees, up approximately 18% from the same quarter last fiscal year. That's up from 504,900 customers in the last quarter.
Among other larger customers, Zoom specifically called out the new business it's doing with Carrier, a longstanding Zoom Meetings customer that's now using Zoom Phone.
"Following several months of extensive vendor reviews of leading UCaaS vendors, Carrier selected Zoom Phone to modernize their phone systems for a large portion of their nearly 53,000 employees across 180 countries," Zoom founder and CEO Eric S. Yuan said in prepared remarks during a Monday conference call.
Zoom Phone had year-over-year revenue growth in the triple-digits in Q3 and reached 30 customers with over 10k paid seats.
For the fourth quarter of fiscal 2022, Zoom expects revenue between $1.051 billion and $1.053 billion. Non-GAAP diluted EPS is expected to be between $1.06 and $1.07.
For the full fiscal year 2022, it expects revenue between $4.079 billion and $4.081 billion. Non-GAAP diluted EPS is expected to be between $4.84 and $4.85.
Analysts are looking for Q4 revenue of $1.02 billion and an EPS of $1.05.