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Oct 31, 2020
Zoom Q3 2021 Earnings Report
Zoom's Q3 2021 financial results showcased substantial growth driven by strong demand and execution.
Key Takeaways
Zoom Video Communications, Inc. reported a remarkable 367% year-over-year increase in total revenue for the third quarter of fiscal year 2021, reaching $777.2 million. The company's GAAP net income attributable to common stockholders was $198.4 million, or $0.66 per share, compared to $2.2 million, or $0.01 per share, in the third quarter of fiscal year 2020. Zoom is increasing total revenue outlook of approximately $2.575 billion to $2.580 billion for fiscal year 2021.
Total revenue for the third quarter reached $777.2 million, a 367% increase year-over-year.
GAAP income from operations was $192.2 million, a significant improvement from a $1.7 million loss in the same quarter of the previous fiscal year.
GAAP net income attributable to common stockholders was $198.4 million, or $0.66 per share, compared to $2.2 million, or $0.01 per share, in the third quarter of fiscal year 2020.
Zoom had approximately 433,700 customers with more than 10 employees, a 485% increase year-over-year.
Forward Guidance
Zoom is providing the following guidance for its fourth quarter fiscal year 2021 and its full fiscal year 2021. Zoom's revenue outlook takes into consideration the demand for remote work solutions for businesses. It also assumes increased churn in the fourth quarter when compared to historic churn levels due to a higher percentage of customers who purchased monthly subscriptions.
Positive Outlook
- Total revenue is expected to be between $806.0 million and $811.0 million for Q4 2021.
- Non-GAAP income from operations is expected to be between $243.0 million and $248.0 million for Q4 2021.
- Non-GAAP diluted EPS is expected to be between $0.77 and $0.79 for Q4 2021.
- Total revenue is expected to be between $2.575 billion and $2.580 billion for fiscal year 2021.
- Non-GAAP income from operations is expected to be between $865.0 million and $870.0 million for fiscal year 2021.
Challenges Ahead
- Increased churn in the fourth quarter when compared to historic churn levels due to a higher percentage of customers who purchased monthly subscriptions.
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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