SEARCH FINANCIAL SERVICES INFRASTRUCTURE SECURITY SCIENCE INTERVIEWS

 

     

Zoom Profits Beat - Guides Up

May 24, 2022

Zoom Video Communications reported financial results for the first fiscal quarter ended April 30, 2022.

The firm had earnings of $1.03 per share with only 87 cents per share expected.
On the top line, $1.07 billion came with $1.07 billion expected.

For FY 2023, Zoom guided revenue between $4.53 billion and $4.55 billion, versus the $4.55 billion expectation. Zoom is looking for earnings between $3.70 and $3.77 per share, versus $3.53 analysts were expecting.

“In Q1, we launched Zoom Contact Center, Zoom Whiteboard and Zoom IQ for Sales, demonstrating our continued focus on enhancing the customer experience and promoting hybrid work. We believe these innovative solutions will further expand our market opportunity for future growth and expansion with customers,” said Zoom founder and CEO, Eric S. Yuan. “Additionally in Q1, we delivered revenue of over one billion dollars driven by ongoing success in Enterprise, Zoom Rooms, and Zoom Phone, which reached 3 million seats during the quarter. We also maintained strong profitability and cash flow, including 17% in GAAP operating margin, approximately 37% non-GAAP operating margin, approximately 49% operating cash flow margin, and over 46% adjusted free cash flow margin.”

First Quarter Fiscal Year 2023 Financial Highlights:

  • Revenue: Total revenue for the first quarter was $1,073.8 million, up 12% year over year.
  • Income from Operations and Operating Margin: GAAP income from operations for the first quarter was $187.1 million, compared to GAAP income from operations of $226.3 million in the first quarter of fiscal year 2022. After adjusting for stock-based compensation expense and related payroll taxes, litigation settlements, net, and acquisition-related expenses, non-GAAP income from operations for the first quarter was $399.6 million, compared to non-GAAP income from operations of $400.9 million in the first quarter of fiscal year 2022. For the first quarter, GAAP operating margin was 17.4% and non-GAAP operating margin was 37.2%.
  • Net Income and Diluted Net Income Per Share: GAAP net income attributable to common stockholders for the first quarter was $113.6 million, or $0.37 per share, compared to GAAP net income attributable to common stockholders of $227.4 million, or $0.74 per share in the first quarter of fiscal year 2022.

    Non-GAAP net income for the first quarter was $315.8 million, after adjusting for stock-based compensation expense and related payroll taxes, litigation settlements, net, losses on strategic investments, net, acquisition-related expenses, undistributed earnings attributable to participating securities, and the tax effects on non-GAAP adjustments. Non-GAAP net income per share was $1.03. In the first quarter of fiscal year 2022, non-GAAP net income was $402.1 million, or $1.32 per share.
  • Cash and Marketable Securities: Total cash, cash equivalents, and marketable securities, excluding restricted cash, as of April 30, 2022 was $5.7 billion.
  • Cash Flow: Net cash provided by operating activities was $526.2 million for the first quarter, compared to $533.3 million in the first quarter of fiscal year 2022. Adjusted free cash flow, which is net cash provided by operating activities less purchases of property and equipment, plus litigation settlement payments, net, was $501.1 million, compared to $454.2 million in the first quarter of fiscal year 2022.

Customer Metrics: Drivers of total revenue included acquiring new customers and expanding across existing customers. At the end of the first quarter of fiscal year 2023, Zoom had:

  • Approximately 198,900 Enterprise customers, up 24% from the same quarter last fiscal year.
  • A trailing 12-month net dollar expansion rate for Enterprise customers of 123%.
  • 2,916 customers contributing more than $100,000 in trailing 12 months revenue, up approximately 46% from the same quarter last fiscal year.
     

Financial Outlook: Zoom is providing the following guidance for its second quarter fiscal year 2023 and its full fiscal year 2023.

  • Second Quarter Fiscal Year 2023: Total revenue is expected to be between $1.115 billion and $1.120 billion and non-GAAP income from operations is expected to be between $360.0 million and $365.0 million. Non-GAAP diluted EPS is expected to be between $0.90 and $0.92 with approximately 308 million non-GAAP weighted average shares outstanding.
  • Full Fiscal Year 2023: Total revenue is expected to be between $4.530 billion and $4.550 billion. Full fiscal year non-GAAP income from operations is expected to be between $1.480 billion and $1.500 billion. Full fiscal year non-GAAP diluted EPS is expected to be between $3.70 and $3.77 with approximately 309 million non-GAAP weighted average shares outstanding.

Terms of Use | Copyright © 2002 - 2022 CONSTITUENTWORKS SM  CORPORATION. All rights reserved. | Privacy Statement