Monday, Zoom Video Communications released financial results for its first fiscal quarter ended April 30, 2023. The company reported a 3 percent increase in revenue to $1.11 billion, up from $1.07 billion the previous year.
The videoconferencing company now anticipates full-year revenue between $4.46 billion and $4.48 billion, exceeding the consensus estimate of $4.45 billion, and adjusted earnings per share between $4.25 and $4.31, exceeding the consensus estimate of $4.20.
“The Zoom platform is designed to facilitate limitless human connection in order to facilitate the modern workday and strengthen consumer relationships. Zoom is mission-critical to how our customers collaborate internally and externally across the globe, according to Eric S. Yuan, founder and CEO of Zoom.
He added, “The strong start to the year has allowed us to increase our outlook for fiscal year 2024, while continuing to invest in innovations such as AI (artificial intelligence) to make interactions more meaningful and communications more efficient.”
The business estimates fiscal year 2024 sales between $4.47 billion and $4.49 billion and adjusted profits between $4.25 and $4.31 per share.
Zoom’s up-market grew by 23 percent year-over-year to conclude the quarter with 3,580 customers contributing more than $100,000 to trailing 12-month revenue. The company stated in a press release that these customers account for 29 percent of revenue, up from 24 percent in the first quarter of fiscal year 23. They span diverse industries, including healthcare, education, and government, among others.
Workvivo, a modern employee communication and engagement platform, was acquired by Zoom last month.
“Incorporating Workvivo’s feature-rich technology into an all-in-one collaboration solution will allow us to offer Zoom customers a unified platform that keeps knowledge workers and frontline employees informed, engaged, and connected throughout the workday, regardless of their in-person, remote, or hybrid work style,” Eric S. Yuan stated.
The previous week, Zoom announced a strategic investment in Anthropic, an AI safety and research company working to develop trustworthy, interpretable, and steered AI systems. The partnership with Anthropic will enhance its federated approach to AI by enabling the integration of Claude, Anthropic’s AI assistant, across Zoom’s entire platform.
The company ended the quarter with cash, cash equivalents, and marketable securities totaling approximately $5.6 billion, excluding restricted capital.
“Our operating cash flow for the quarter was $418 million, compared to $526 million in the first quarter of last year. Free cash flow was $397 million, compared to $501 million in the first quarter of the previous year. The company’s operating cash flow and free cash flow margins were, respectively, 37.9 percent and 35.9 percent.