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Zoom reports steady quarterly growth

Zoom reports steady quarterly growth

Big channel player Zoom Video Communications has reported business growth for its third quarter, ending 31 October, 2023.

Third quarter total revenue was $1.136.7 billion, up 3.2% year-over-year.

Third quarter Enterprise revenue was $660.6m, up 7.5% year-over-year.

The GAAP operating margin was 14.9%.

The operating cash flow was $493.2m, up 67%. The number of customers contributing more than $100,000 in trailing 12 months revenue was up 13.5%.

“In Q3, revenue came in ahead of guidance as we bolstered Zoom’s all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion, and continued to evolve our customer and employee engagement solutions. We are also pleased with our Online business where we drove higher retention and saw usage of our new AI capabilities, enhancing the value of our platform,” said Eric S. Yuan, Zoom founder and CEO.

He added: “Our strong performance across a number of metrics has enabled us to increase our full year outlook for revenue and non-GAAP profitability, as well as for free cash flow, which we now expect to be in the range of $1.34 billion to $1.35 billion, up around 13% year-over-year.”

Online revenue was $476.1m, down 2.4%. GAAP operating income was $169.4m compared to $66.5m last time.

After adjusting for stock-based compensation expense and related payroll taxes, acquisition-related expenses, restructuring expenses, and litigation settlements, net, non-GAAP income from operations for the third quarter was $447.1m, compared to non-GAAP income from operations of $380.9m last year.