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Apr 30, 2021

Zoom Q1 2022 Earnings Report

Zoom's Q1 2022 financial results were released, showcasing substantial revenue growth and profitability.

Key Takeaways

Zoom Video Communications, Inc. reported a very strong first quarter with a 191% year-over-year increase in total revenue, alongside strong profitability and cash flow. The company is raising its full fiscal year guidance range to $3.975 billion to $3.990 billion.

Total revenue for the first quarter was $956.2 million, up 191% year over year.

GAAP income from operations for the first quarter was $226.3 million, up from $23.4 million in the first quarter of fiscal year 2021.

GAAP net income attributable to common stockholders for the first quarter was $227.4 million, or $0.74 per share.

Approximately 497,000 customers with more than 10 employees, up approximately 87% from the same quarter last fiscal year.

Total Revenue
$956M
Previous year: $328M
+191.4%
EPS
$1.32
Previous year: $0.2
+560.0%
Customers > $100k TTM Revenue
2K
Previous year: 769
+159.9%
Net Dollar Expansion Rate
130%
Gross Profit
$691M
Previous year: $224M
+208.0%
Cash and Equivalents
$1.56B
Previous year: $489M
+218.7%
Free Cash Flow
$454M
Previous year: $252M
+80.5%
Total Assets
$5.89B
Previous year: $2.07B
+184.8%

Zoom

Zoom

Forward Guidance

Zoom is providing the following guidance for its second quarter fiscal year 2022 and its full fiscal year 2022. Total revenue is expected to be between $985.0 million and $990.0 million and non-GAAP income from operations is expected to be between $355.0 million and $360.0 million. Non-GAAP diluted EPS is expected to be between $1.14 and $1.15 with approximately 311 million non-GAAP weighted average shares outstanding. Total revenue is expected to be between $3.975 billion and $3.990 billion. Non-GAAP income from operations is expected to be between $1.425 billion and $1.440 billion. Non-GAAP diluted EPS is expected to be between $4.56 and $4.61 with approximately 311 million non-GAAP weighted average shares outstanding.

Positive Outlook

  • Total revenue is expected to be between $985.0 million and $990.0 million for Q2 2022.
  • Non-GAAP income from operations is expected to be between $355.0 million and $360.0 million for Q2 2022.
  • Non-GAAP diluted EPS is expected to be between $1.14 and $1.15 for Q2 2022.
  • Total revenue is expected to be between $3.975 billion and $3.990 billion for full year 2022.
  • Non-GAAP income from operations is expected to be between $1.425 billion and $1.440 billion for full year 2022.

Challenges Ahead

  • 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.
  • Factors could be material to Zoom's results computed in accordance with GAAP.
  • Declines in new customers and hosts.
  • Competition from other providers of communications platforms.
  • Continued uncertainty regarding the extent and duration of the impact of COVID-19 and the responses of government and private industry thereto.