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Zoom
🇺🇸 NASDAQ:ZM
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Jul 31, 2020

Zoom Q2 2021 Earnings Report

Zoom's revenue surged due to increased demand for remote work solutions amid the pandemic.

Key Takeaways

Zoom Video Communications, Inc. reported a significant increase in revenue for the second quarter of fiscal year 2021, driven by the shift to remote work and increased demand for its video-first unified communications platform. The company's revenue grew by 355% year-over-year, and it increased its revenue outlook for the full fiscal year 2021.

Total revenue for the quarter was $663.5 million, up 355% year-over-year.

GAAP income from operations for the quarter was $188.1 million, compared to $2.3 million in the second quarter of fiscal year 2020.

GAAP net income attributable to common stockholders for the quarter was $185.7 million, or $0.63 per share.

Approximately 370,200 customers with more than 10 employees, up approximately 458% from the same quarter last fiscal year.

Total Revenue
$664M
Previous year: $146M
+355.0%
EPS
$0.92
Previous year: $0.08
+1050.0%
Customers > $100k TTM Revenue
988
Previous year: 466
+112.0%
Gross Profit
$471M
Previous year: $118M
+299.6%
Cash and Equivalents
$749M
Previous year: $214M
+250.2%
Free Cash Flow
$373M
Previous year: $17.1M
+2079.5%
Total Assets
$2.62B
Previous year: $1.07B
+145.3%

Zoom

Zoom

Forward Guidance

Zoom provided guidance for its third quarter and full fiscal year 2021, expecting continued revenue growth and non-GAAP profitability.

Positive Outlook

  • Total revenue for Q3 is expected to be between $685.0 million and $690.0 million.
  • Non-GAAP income from operations for Q3 is expected to be between $225.0 million and $230.0 million.
  • Non-GAAP diluted EPS for Q3 is expected to be between $0.73 and $0.74.
  • Total revenue for full fiscal year 2021 is expected to be between $2.37 billion and $2.39 billion.
  • Non-GAAP income from operations for full fiscal year 2021 is expected to be between $730.0 million and $750.0 million.

Challenges Ahead

  • The revenue outlook takes into consideration the demand for remote work solutions for businesses.
  • It also 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.
  • Uncertainty regarding the extent and duration of the impact of COVID-19.
  • Impact of COVID-19 on the overall economic environment.
  • Our business would be harmed by any significant interruptions, delays or outages in services from our co-located data centers.

Company Overview

Full financial data and analysis

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