Zoom Q3 Beats
November 23, 202
Zoom Video Communications reported financial results for the third
fiscal quarter ended October 31, 2021. The firm delivered
earnings of $1.11 per share, adjusted with only $1.09 per share
expected. At the top line, revenue was $1.05 billion which topped the
$1.02 billion which was expected.
“In Q3, we held our premier user event, Zoomtopia, on our Zoom Events
service. During this immersive, multi-track conference, we showcased how
Zoom is placing people at the center of our communications platform,
connecting their disparate work streams into our technology, moving
beyond enterprises’ ability to collaborate internally, and empowering
them to communicate face-to-face with their customers through Zoom
Events and our upcoming Video Engagement Center. We also showcased
innovations such as hot desking, whiteboarding, and smart gallery, all
designed to empower both co-located and remote hybrid workforces as some
companies test return to office programs,” said Zoom founder and CEO,
Eric S. Yuan. “Through innovation and dedication, we will continue to
deliver happiness to our customers. Looking forward, we expect to close
the year between $4.079 to $4.081 billion in total revenue, representing
approximately 54% year-over-year growth, alongside strong profitability
and operating cash flow growth. We are well on our way to becoming an
indispensable platform for enterprises, individuals, and developers to
connect, collaborate, and build in the flexible hybrid world of work. We
believe our global brand, innovative technologies, and large customer
base position us well for the future.”
Third Quarter Fiscal Year
2022 Financial Highlights:Cash
Flow: Net cash provided by operating activities was
$394.6 million for the third quarter, compared to
$411.5 million in the third quarter of fiscal year 2021.
Free cash flow, which is net cash provided by operating
activities less purchases of property and equipment, was
$374.8 million, compared to $388.2 million in the
third quarter of fiscal year 2021.
Revenue: Total revenue for the third quarter was $1,050.8
million, up 35% year over year.
from Operations and Operating Margin: GAAP income from
operations for the third quarter was
$290.9 million, up from $192.2 million in the
third quarter of fiscal year 2021. After adjusting for
stock-based compensation expense and related payroll taxes, and
acquisition-related expenses, non-GAAP income from operations
for the third quarter was $411.3 million, up from
$290.8 million in the third quarter of fiscal year 2021.
For the third quarter, GAAP operating margin was 27.7% and non-GAAP
operating margin was 39.1%.
Income and Diluted Net Income Per Share: GAAP net income
attributable to common stockholders for the third quarter was
$340.3 million, or
$1.11 per share, up from $198.4 million, or
$0.66 per share in the third quarter of fiscal year 2021.
Non-GAAP net income for the third quarter was $338.4
million, after adjusting for stock-based compensation
expense and related payroll taxes, acquisition-related expenses,
gains on strategic investments, net, and undistributed earnings
attributable to participating securities. Non-GAAP net income
per share was $1.11. In the third quarter of
fiscal year 2021, non-GAAP net income was
$297.2 million, or $0.99 per share.
Cash and Marketable Securities: Total cash, cash
equivalents, and marketable securities, excluding restricted
cash, as of October 31, 2021 was $5.4
Customer Metrics: Drivers of total
revenue included acquiring new customers and expanding across
existing customers. At the end of the third quarter of fiscal year
2022, Zoom had:
customers contributing more than $100,000 in
trailing 12 months revenue, up approximately 94% from the same
quarter last fiscal year.
Approximately 512,100 customers with more than 10 employees, up
approximately 18% from the same quarter last fiscal year.
trailing 12-month net dollar expansion rate in customers with
more than 10 employees above 130% for the 14th consecutive
Financial Outlook: Zoom is providing
the following guidance for its fourth quarter fiscal year 2022 and
its full fiscal year 2022.
Quarter Fiscal Year 2022: Total revenue is expected to be
between $1.051 billion and
$1.053 billion and non-GAAP income from operations is expected to
be between $361.0 million and $363.0
million. Non-GAAP diluted EPS is expected to be between
$1.07 with approximately 307 million non-GAAP weighted average
Fiscal Year 2022: Total revenue is expected to be between
$4.079 billion and
$4.081 billion. Non-GAAP income from operations is expected to be
between $1.598 billion and $1.600 billion.
Non-GAAP diluted EPS is expected to be between $4.84
$4.85 with approximately 306 million non-GAAP weighted average