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Apr 30, 2020
Zoom Q1 2021 Earnings Report
Zoom's Q1 2021 financial results showcased substantial growth driven by increased demand for its platform.
Key Takeaways
Zoom Video Communications, Inc. reported a significant increase in revenue and customer base for the quarter ended April 30, 2020. Total revenue reached $328.2 million, a 169% increase year-over-year. The company's customer base also expanded, with a 354% increase in customers with more than 10 employees.
Total revenue for the quarter was $328.2 million, up 169% year-over-year.
GAAP income from operations was $23.4 million, compared to $1.6 million in the first quarter of fiscal year 2020.
Approximately 265,400 customers with more than 10 employees, up 354% year-over-year.
769 customers contributing more than $100,000 in TTM revenue, up approximately 90% year-over-year.
Zoom
Zoom
Forward Guidance
Zoom provided guidance for its second quarter and full fiscal year 2021. Total revenue for Q2 is expected to be between $495.0 million and $500.0 million. Full fiscal year revenue is expected to be between $1.775 billion and $1.800 billion.
Positive Outlook
- Total revenue is expected to be between $495.0 million and $500.0 million
- Non-GAAP income from operations is expected to be between $130.0 million and $135.0 million.
- Non-GAAP diluted EPS is expected to be between $0.44 and $0.46 with approximately 299 million non-GAAP weighted average shares outstanding.
- Total revenue is expected to be between $1.775 billion and $1.800 billion.
- Non-GAAP income from operations is expected to be between $355.0 million and $380.0 million.
Challenges Ahead
- Assumed increased churn in the second half of the fiscal year when compared to historic churn levels due to a higher percentage of customers who purchased monthly subscriptions in the first quarter.
- A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future.
- Business, financial results and prospects would be harmed by any decline in new customers and hosts, renewals or upgrades.
- There is continued uncertainty regarding the extent and duration of the impact of COVID-19 and the responses of government and private industry thereto, as well as the impact of COVID-19 on the overall economic environment.
- Business would be harmed by any significant interruptions, delays or outages in services from our co-located data centers, and failures in internet infrastructure or interference with broadband access could cause current or potential users to believe that our systems are unreliable.