Zoom crosses $1 billion in quarterly sales for the first time
Zoom's second-quarter financial results beat top and bottom-line market estimates, the company reported Monday, with total quarterly revenue exceeding $1 billion for the first time in the company's history. The videoconferencing reached this revenue milestone just five quarters after reaching a billion-dollar annual run rate.
However, shares were down in after-hours trading.
Zoom's non-GAAP net income for the quarter was $415.1 million, or $1.36 per share. Total revenue for the second quarter came to $1.021 billion, up 54% year-over-year.
Analysts were expecting earnings of $1.16 per share on revenue of $990.96 million.
"In Q2, we achieved our first billion-dollar revenue quarter while delivering strong profitability and cash flow," Zoom founder and CEO Eric S. Yuan said in a statement. "Q2 also marked several milestones on our expansion beyond the UC platform. We launched Zoom Apps, bringing over 50 apps directly into the Zoom experience, and Zoom Events, an all-in-one digital events service. Today we are a global brand counting over half a million customers with more than 10 employees, which we believe positions us extremely well to support organizations and individuals as they look to reimagine work, communications, and collaboration."
While Zoom's Q2 2022 results were solid, they paled in comparison to the company's performance over the prior year, when topicswhenthe COVID-19 pandemic drove businesses and individuals alike to the videoconferencing tool.
"It is important to note that as we've just lapped our first full quarter year-over-year compare since the start of the pandemic, we have seen customers return to more thoughtful, measured buying patterns," CFO Kelly Steckelberg said in prepared remarks on a Monday conference call. "While revenue, profitability, and cash flow were strong in the second quarter and the first half, other metrics have begun to normalize, especially when compared to the unprecedented year-over-year comps."
Zoom said its revenue growth was the result of both new customers and expanded customer sales.
At the end of the second quarter, the company had 2278 customers contributing more than $100 000 in trailing 12 months revenue, up approximately 131% from the same quarter last fiscal year. It had approximately 504 900 customers with more than 10 employees, up approximately 36% from a year prior.
Zoom was able to grow the number of enterprise customers spending more than $1 million in ARR by 77% year-over-year.
Zoom also reported accelerated growth for Zoom Phone and Zoom Rooms.
The number of customers spending more than $100 000 in ARR on Zoom Phone grew in Q2 by 241% year-over-year. In August, Zoom reached 2 million Zoom Phone seats sold, only eight months after reaching its first million.
For the third quarter of fiscal 2022, Zoom expects revenue between $1.015 billion and $1.020 billion.
For the full fiscal year 2022, it expects revenue between $4.005 billion and $4.015 billion.