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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.
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.