Zoom reports strong Q1, ups outlook, adds to swelling customer base
Zoom reported strong results in its first quarterly report since its IPO.
The company reported first quarter earnings of $200,000, or break even on a per share basis, on revenue of $122 million, up 103% from a year ago. Non-GAAP earnings for the first quarter were 3 cents a share.
Wall Street was looking for non-GAAP earnings of 1 cents a share for the first quarter on revenue of $111.7 million.
Meanwhile, Zoom’s outlook was strong. Zoom said second quarter revenue will be between $129 million to $130 million with non-GAAP earnings between a penny a share and 2 cents a share.
Wall Street was expecting second quarter revenue of $122.1 million.
CEO Eric Yuan said the company remains focused on strong growth, but noted Zoom’s efficient business model is delivering non-GAAP earnings and free cash flow.
Zoom said it added about 58,500 customers with more than 10 employees and had 405 customers spending more than $100,000 for the trailing 12 months.
Kelly Steckelberg, CFO of Zoom, said:
Some of the key drivers of our revenue performance were our acquisition of new customers and the execution of our “land and expand” strategy with existing customers. Specifically, the year over year increase in revenue was split between subscription services provided to new customers which accounted for approximately 64% of the increase while the remaining 36% increase was due to subscription services for existing customers.
The company projected fiscal 2020 revenue of $535 million to $540 million with non-GAAP earnings of 2 cents a share to 3 cents a share.