Zoom doubles sales despite easing of lockdown restrictions

Despite the easing of lockdown restrictions, sales of video conferencing platform Zoom have more than doubled after a “very strong” start to the year.

Its profits for the first quarter of 2021 reached more than $227m (£160m), up from about $27m in the first quarter of 2020. But analysts previously said the firm could face a battle to remain relevant as more people get vaccinated and social distancing restrictions ease.

Zoom said that in the three months to 30 April, its revenues rose to $956m from $328m the same period a year earlier. It also upgraded its expectations for the full financial year on Tuesday.

Annual revenues are now set to reach up to $3.99bn, up from its previous estimate of up to $3.76bn.

Says Zoom founder and CEO, Eric S. Yuan:

“We kicked off the fiscal year with a very strong first quarter, posting 191% total year-over-year revenue growth combined with strong profitability and cash flow. Our steadfast commitment to empowering customers to work and learn from anywhere with our expansive, innovative, and frictionless video communications platform continued to drive our results.

“With this solid start, we are pleased to raise our total guidance range to $3.975 billion to $3.990 billion for the full fiscal year. We have also opened our technology portfolio to developers through our powerful video SDK and to businesses to expand their reach through Zoom Events.”

“Work is no longer a place, it’s a space where Zoom serves to empower your teams to connect and bring their best ideas to life. We are energized to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections.”

First Quarter Fiscal Year 2022 Financial Highlights:

• Revenue: Total revenue for the first quarter was $956.2 million, up 191% year over year.
• Income from Operations and Operating Margin: Income from operations for the first quarter was $226.3 million, up from $23.4 million in the first quarter of fiscal year 2021. After adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, and litigation settlements, net, non-GAAP income from operations for the first quarter was $400.9 million, up from $54.6 million in the first quarter of fiscal year 2021. For the first quarter, operating margin was 23.7% and non-GAAP operating margin was 41.9%.
• Net Income and Net Income Per Share: Net income attributable to common stockholders for the first quarter was $227.4 million, or $0.74 per share, up from $27.0 million, or $0.09 per share in the first quarter of fiscal year 2021.