Zoom Q2 2023 Earnings Report
Key Takeaways
Zoom Video Communications announced its Q2 2023 financial results, with total revenue reaching $1,099.5 million, an 8% increase year-over-year. The company's GAAP operating margin was 11.1%, while the non-GAAP operating margin was 35.8%. Zoom is expecting to deliver FY23 revenue in the range of $4.385 billion to $4.395 billion.
Total revenue for the second quarter was $1,099.5 million, up 8% year over year.
GAAP income from operations for the second quarter was $121.7 million.
GAAP net income attributable to common stockholders for the second quarter was $45.7 million, or $0.15 per share.
Zoom had approximately 204,100 Enterprise customers, up 18% from the same quarter last fiscal year.
Zoom
Zoom
Forward Guidance
Zoom provided guidance for its third quarter and full fiscal year 2023.
Positive Outlook
- Third quarter total revenue is expected to be between $1.095 billion and $1.100 billion.
- Third quarter non-GAAP income from operations is expected to be between $325.0 million and $330.0 million.
- Third quarter non-GAAP diluted EPS is expected to be between $0.82 and $0.83 with approximately 306 million weighted average shares outstanding.
- Full fiscal year total revenue is expected to be between $4.385 billion and $4.395 billion.
- Full fiscal year non-GAAP income from operations is expected to be between $1.440 billion and $1.450 billion.
Challenges Ahead
- A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
- The uncertainty of expenses that may be incurred in the future could be material to Zoom's results computed in accordance with GAAP.
- Revenue was impacted by the strengthening of the U.S. dollar.
- Performance of the online business impacted revenue.
- Sales weighted to the backend of the quarter impacted revenue.