Zoom Video Communications Inc (NASDAQ:ZM) has reported slower sales growth as more workers return to the office following the coronavirus pandemic, curtailing demand for video conferencing.
Still, the company managed to beat Wall Street revenue estimates while raising its full-year guidance.
Revenue for the quarter to April 30, 2023, rose by 3% to $1.11 billion, beating analysts’ expectations for $1.08 billion. Enterprise revenue jumped 13% to $632 million while Online revenue declined 8% to $473.4 million.
On a non-GAAP basis, net income for the quarter rose 12% to $353.3 million, resulting in a 13% rise in income per share to $1.16.
The company noted that the number of customers contributing more than $100,000 in trailing 12 month-revenue was up 23% year-over-year.
"The Zoom platform is designed to support limitless human connection to empower the modern workday and strengthen customer relationships. Our customers see Zoom as mission-critical in how they collaborate internally and externally across the globe,” Zoom's founder and CEO Eric Yuan said in the company's earnings statement.
“This relationship with our customers helped us to exceed our guidance due to Enterprise growth and stabilizing Online revenue while driving greater efficiencies in our business to deliver strong profitability and free cash flow margin," he added.
The company now expects total revenue for full-year 2024 of $4.47 billion to $4.49 billion, up from its previous forecast of $4.44 billion to $4.46 billion, and non-GAAP EPS of $4.25 to $4.31.
“The solid start to the year has enabled us to raise our outlook for fiscal year 2024 while continuing to invest in innovations such as AI to help make interactions more meaningful and communications more effective,” Yuan concluded.
Contact the author at stephen.gunnion@proactiveinvestors.com