By Adedapo Adesanya
Video conferencing platform, Zoom, generated $328.2 million in revenue for the quarter ended April 30 in its recently released financial statements.
The revenue generated by the company increased by a whopping 169 percent when compared with the revenue generated by the same period of the previous year.
Zoom also reported $0.20/per share in adjusted profit during the three-month period. Ahead of its earnings, shares were up by more than 3 times during the year, as investors were expecting big gains.
This is mainly because of the adoption of the Zoom platform around the globe as COVID-19 drove workers to stay home and work remotely.
The company, which is in its 2021 fiscal year, attributed a generally accepted accounting principle (GAAP) net income of about $27 million to common stockholders for the quarter. This is a 26.8 million increase from the GAAP net income of $0.2 million attributed in the first quarter of the 2020 fiscal year.
Income from incoming operations stood at $23.4 million for the quarter compared to the $1.6 million generated during the same quarter the previous year.
The non-GAAP net income was higher at $58.3 million after adjusting for stock-based compensation expense and related payroll taxes, expenses related to charitable donations.
Zoom’s cash generation was impressive during the quarter as the total cash, cash equivalents, and marketable securities as of April 30, 2020, was about $1.1 billion.
The net cash provided by operating activities was about $259 million. This is a 1,066 percent increase compared to $22.2 million recorded in the first quarter of the 2020 fiscal year.
Free cash flow racked up during the quarter was $251.7 million, compared to $15.3 million in the first quarter of the fiscal year 2020.
Following the increased adoption of remote work, Zoom customer base rose to approximately 265,400 customers. This was a significant 354 percent growth from the same quarter the previous year.
According to the report, the new customers and expanding across existing customers was the main driver of the increased revenue generated. 769 customers contributed more than $100,000 in revenue in the last 12 months.
Looking forward, Zoom expects higher revenue of between $495.0 million and $500.0 million in Q2. For non-GAAP income from operations, the company expects between $130.0 million and $135.0 million.
In the full fiscal year of 2021, Zoom is looking at revenues between $1.775 billion and $1.800 billion. Earnings per share (EPS) is expected to be between $1.21 and $1.29 with approximately 300 million non-GAAP weighted average shares outstanding.
However, the video company acknowledged the possibility of a decline in the second half of the fiscal year due to businesses no longer needing Zoom because workers are returning back to offices.
Speaking on the good performance, Mr Eric S. Yuan, Founder and Chief Executive Officer of Zoom said, “We were humbled by the accelerated adoption of the Zoom platform around the globe in Q1.
“The COVID-19 crisis has driven higher demand for distributed, face-to-face interactions and collaboration using Zoom. Use cases have grown rapidly as people integrated Zoom into their work, learning, and personal lives.”
“I am proud of our Zoom employees who dedicated themselves to support customers and the global community during this crisis.
“With their tremendous efforts, we were able to provide high-quality video services to new and existing customers,” he added.
Aduragbemi Omiyale